The price of gold saw a record increase on 22 april when it crossed Rs 1 lakh per 10 grams. However, market experts were already predicting that by the end of april i.e. by the time Akshaya Tritiya arrives, gold could cross 1 lakh. But, since then, a continuous decrease in the price of gold has been seen in the past few days. According to the indian Bullion Association, on Tuesday, gold fell by 0.8 percent to Rs 95,560 per 10 grams.
If we look at it globally, the price of gold has fallen by about 1 percent. The spot gold rate has fallen by 0.8 percent to $ 3,314.99 per ounce. While US gold futures have fallen by 0.7 percent to $ 3,325 per ounce.
gold prices fall globally
According to market experts, the major reason for the fall in gold prices is the reduction in tensions over world trade and the positive trend of investors in the global market. US Treasury Secretary Scott Besant recently said that many top trading partner countries, including india, have come up with better proposals in lieu of US tariffs. He also said that trade agreements with india may be signed soon.
Apart from this, China's decision to remove some tariffs on US goods is also being considered a step towards reducing tensions. The US government has also indicated that they will reduce auto tariffs, which may further improve trade relations.
gold prices coming down from the sky
Jitan Trivedi, VP Research Analyst at LKP Securities, said - The reason for the reduction of tensions in trade relations is that the US has opened the way for many countries to negotiate on tariffs. Also, US President Donald Trump's statement that a trade agreement between china and the US will be signed soon has also helped a lot in reducing tensions. Apart from this, the possible peace agreement between russia and ukraine has also reduced the safe investment sentiment in gold.
As soon as the feeling of fear among investors ends, they will stop thinking of investing money in safe investments like gold. If the demand for gold decreases like this, its price will fall. Experts say that due to the fear of global recession and uncertainty in the international market, gold had earlier reached $ 3,500.05 per ounce.
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