Gold Rate Drop: Gold prices seem to be coming within the reach of common people these days. In 10 days, gold rates have come down by Rs 4750 per 10 grams and due to this gold has become cheaper by more than 6 percent from its upper rate. However, there is an international connection behind the falling prices of gold and those who know this can understand why this connection will have a deep impact on the price of gold in the future.
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Gold prices fell in the international market
In the global market, the price of gold on Comex has come down to $ 2,570.10 per ounce and it has come down considerably from its upper level. Gold had gone to the rate of $ 2622.45 per ounce in the last one week and thus its rate has come down by more than $ 50 per ounce. Its rate was seen around $ 2678.70 per ounce around the beginning of October.Â
How have the conditions changed in the international market
The dollar has been strengthening since the Federal Reserve reduced interest rates in two consecutive FOMC meetings in the US and its effect is being seen in the form of falling gold prices. At present, the bullish view of experts on the price of gold has reduced a bit and amid the latest global conditions, the gold rate is expected to move at a lesser pace than before.
This may be a matter of some concern for gold investors, but it will prove to be good news for common buyers waiting for gold to become cheaper during the wedding season.
Earlier there were estimates of going up to $3000 – now the situation has changed
Gold has a direct correlation with the dollar and when the price of the dollar goes up, the price of gold corrects. However, by the beginning of November this year, amid the continuous rise in the price of gold, commodity experts had predicted that the rate of gold in Indian rupees could go up to Rs 85,000 per 10 grams.
At the same time, Citigroup and Goldman Sachs had predicted that the price of gold in the international market would go up to $ 3000. Based on the report released in early October, the price of gold was expected to go towards $ 3000 per ounce.
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INR vs USD: Rupee Hits All-Time Low of 84.37 against US Dollar
