Hi Guys!! As you are aware gold rates have been surged to an all time high price, do you really know the reason behind it?
No, then you have come to a right place, today we are going to discuss the reason due for sudden spike in gold prices.
Actually gold prices spiked due to trade war worries and expectations of policy easing by central bank followed by weak global economic outlook.
Since Jan’19 there is an increase of >25% in gold prices in both Indian & International markets.
However, same is recently corrected because of some corrective measures taken by central banks and ease of pressure of trade war, there was also profit booking seen in past few weeks.
Last week US Fed bank 2nd time in this year has reduced rates with a 25 basis points & these cuts usually are supportive for metal like gold.
Along with India, US economic growth has also slowed down to 2% in 2nd Qtr with low job creations.
Since US has delayed the proposed tariffs on Chinese goods this is considered to be a positive signs between both.
As a supporter to gold prices, the Middle East tension and a warlike situation between US and Iran due to attacks on Saudi’s oil fields is pushing prices further.
Although demand in India right now is down due to a sudden increase in price, it is likely to edge higher on note of festivals like Diwali, Dusshera in the month of Oct’19
Let’s check what happens next week as rally is likely to continue however recovery in rupee is likely to slow down the sentiments.
Latest Gold Traded Price: Rs. 37697 with expiry at 4th Oct’19