New Delhi: In the domestic market, on Friday, based on the global market, gold-silver prices (Gold-Silver rates) saw a rise. Gold futures for October on the Multi Commodity Exchange (MCX) rose by 1 per cent to Rs 51,399 per 10 grams. However, silver prices increased by 1.5 percent. On Thursday and Friday, there was a big fluctuation in the price of gold in India. However, compared to the highest level of Rs 56,000 per 10 grams on August 7, the price of gold is still about Rs 5,000 less.
Global market boom
On Friday, the price of gold in the global market jumped by about 2 percent. In fact, gold was strengthened by the weakness in the dollar and the US Federal Reserve pointing to an even lower interest rate strategy. Gold in the US rose nearly 2 percent to $ 1,974 an ounce. On Thursday, the price of gold had fallen by 2 per cent after a speech given by the US central bank chairman Jerome Powell about the new policy.
What does the Fed Reserve decision mean?
The Federal Reserve Chairman said on Thursday that the central bank will adopt the target of average inflation rate. This means that even if inflation rises in America in the coming days, even then the interest rates will remain low. Analysts believe that since gold is a non-interest asset, its price can be supported. It is generally believed that gold is supported by low interest rates. Gold is beneficial for investors in the weakening of any country’s currency and increasing inflation.
Gold became costlier by 28 percent this year
In the midst of the corona virus epidemic, central banks and governments around the world have announced a massive financial incentive (Fiscal Stimulus). This is the reason that the price of gold has gone up by about 28 percent this year.
Experts say that the steps being taken by the Fed on inflation and interest rates point to the fact that liquidity will remain around the world for a long time. With this decision, there will be a boom in asset class of many categories. Other precious metals and course equities, including such gold, will continue to rise.
On the other hand, the biggest risk for gold currently is the availability of Corona virus vaccine and correction in the stock market.
Buy gold for Rs 5117
Talking about India, the government is now giving another opportunity to invest gold cheaply. The subscription will open for the sixth tranche of Sovereign Gold Bond for the current financial year from Monday. The Reserve Bank of India will issue this gold bond on behalf of the central government. This time RBI has fixed the new price of the gold bond at Rs 5,117 per gram. This subscription will end on 4 September. Investors will also get a benefit of Rs 50 per gram for applying online and making digital payments.
