After America’s president election, now Indians are in big relief. Because after the election everyone’s favorite Gold prices are decreasing. Since the historical victory of Donald Trump in the presidential elections in the US, gold has become cheaper by about five thousand rupees so far. Commodity market experts say that there is no positive factor in the medium term. In such a situation, the price of gold may continue to decline in the coming time.
According to the data of the India Bullion and Jewellers Association, the price of gold in India was Rs 78,566 per 10 grams on November 6, the day of Donald Trump’s victory, which has come down to Rs 73,740 per 10 grams by November 14. Gold prices have declined by Rs 4,826 or over 6 percent during this period.
Gold will be cheaper?
Jatin Trivedi, Senior Research Analyst, Commodity and Currency, LKP Securities, says that gold prices are likely to fall further in the near term as sellers dominate and there are no positive signs in the near term. The US central bank, the Federal Reserve, is continuing to cut interest rates as inflation is approaching the target.
However, with inflation now higher than expected, there is growing concern that the Federal Reserve may pause further cuts. This has increased the pressure on gold prices. Sandeep Raichura, CEO of PL Broking, says that the tariff war is almost certain. So the US dollar has rallied significantly, which is a negative factor for gold.
Why is the price of gold falling?
US tariffs and the trade war could erode the value of the euro and other currencies. This will make it more expensive for buyers who use currencies from other countries. This is the reason why gold prices are falling. American investors are also betting big on the stock market and bitcoin.
At the same time, the Federal Reserve will not be able to cut interest rates aggressively under Trump. This means that Treasury bonds will continue to pay higher interest than before, and this could also hurt gold prices. Gold directly pays zero dividend or income to its owners. In such a situation when bonds are paying more, gold can apparently look less attractive.
