A sudden drop in the price of gold!!!
Since the progress of peace talks between russia and ukraine, there has been a sudden drop in the price of gold in the last week. On Friday, the price of gold on the Multi Commodity Exchange (MCX) fell by Rs 310 per 10 grams to reach the level of Rs 51,275. Recently, the price of gold had reached Rs 55,558, which is the biggest jump so far this year. So far, a fall of Rs 4,283 per 10 grams has been registered in gold.
Commodity market experts believe that the US Fed may take a tough stand on progress in peace talks between russia and ukraine and increase interest rates. This harsh trend can act as a booster dose for the bears in the times to come. However, concerns about global inflation can be seen in the long term.
Fluctuations in the price of gold
On the reasons for the fall in gold prices globally, Sugandha Sachdeva, Vice President, Commodity and currency Research, Religare Broking Ltd. says, “The sentiment for the metal has turned bearish at the beginning of the week. The main reason for this is that russia had promised to reduce military operations around Kyiv. However, there is still a lot of doubt in this.”
