Why gold prices are going down | Fusion - WeRIndia

Why gold prices are going down

Why gold prices are going down

Gold is usually a safe asset in the economic world, and it tends to have a consistent value in the market even amid global economic turmoil.

However, while the overall economic outlook is healthy as of late, this typical money standard seems to be having a peculiar drop in its value, thus pushing the price of it down.

Gold has inched downward on the Indian market for a number of reasons, and here are the five largest reasons as to why this is:

• The rise in United States employment data plays a role in this, with about 138 thousand jobs having been created in this last month of May alone. Thus, with this rise in employment occurring in such an affluent and influential nation, it is only natural that gold therefore is losing its value.

• The prices of gold have also fallen because of there being many recent large scale profit bookings, and it hit a high of nearly five weeks. The price of the metal in Delhi is currently ₹28,000, where it previously held a value of ₹28,200.

• The strength of the United States dollar is also a factor in this. Given the good job data as of late, the United States dollar had a firm value, hitting a week high on Friday against the yen.

• There are strong signals of an interest rate high from the United States as of late, as well as a low in inflation. Their government is also beginning to take off the bond holdings currently at 4.5 trillion dollars.

• There has also been a lowering of demand for gold as of late. Jewelers have been demanding for the metal less in current times, as cited by traders, and thus the price of gold has been dragged down with it.

Image by istara from Pixabay (Free for commercial use)

Image Reference: https://pixabay.com/fr/photos/or-bullion-ing-lingots-d-or-295936/

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