New Delhi: The Federal Reserve, the central bank in the United States, has been raising interest rates since inflation rose to more than 8 percent. Gold prices fell sharply today as Indian stock markets plunged.
Due to the war in Ukraine and the increase in corona infection in China, the global supply chain has been affected and commodity prices have risen sharply. Thus inflation is rising sharply in many countries, including the United States.
The Federal Reserve, the central bank of the United States, is taking drastic measures to control inflation. The Federal Reserve continues to raise interest rates. This is expected to be even tougher. Its impact is echoed in gold.
Foreign-invested companies that used to invest in Indian stock markets are selling their shares and converting their investments to higher-interest US banks. Thus the Indian stock market fell sharply yesterday.
Similarly, companies that have invested in gold are selling. Due to this, the price of gold is falling.
International gold prices fell after touching a one-month high. Spot gold was down 0.6 percent at $ 1,859.90 an ounce today. U.S. gold futures traded down 0.6 percent at $ 1,864.40.
In Chennai, the price of jewelery gold fell by Rs 95 per gram to Rs 4,740. The pound traded lower by Rs 760 to Rs 37,920. Similarly, 24 carat pure gold is priced at Rs 41,112 per 8 grams.
Kodak Securities said: “The US Federal Reserve will make its next decision later this week. Prior to that there may be a lot of uncertainty in the market. The central bank is expected to raise interest rates by 0.5%, which is a risk factor. Therefore, the engagement situation is likely to continue this week.
ICICI Direct said, “MCX gold prices have been impacted by concerns about high inflation and geopolitical uncertainty.
International spot and Comx gold prices started weak in Asian trade on Monday morning. This is due to the Federal Reserve’s approach to monitoring the strength of the dollar and reducing inflation. ”
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