By Admin 
Gold Price: On one hand, there is a war in the Middle East, Iran is threatening to take the price of oil to 200 dollars and on the other hand, the prices of gold are falling. Now this sounds strange but this is what is happening. Let us understand what is the matter? And is this the right time to buy gold?
When there is war, gold becomes expensive, so why is it cheap this time?
Usually when tension increases in the world, people invest money in gold. Gold is considered a ‘safe haven’ but this time the game has changed.
Due to the war with Iran, oil prices crossed $100 per barrel. Due to this, there is a fear of increasing inflation in America. When inflation increases, the US central bank i.e. Fed does not reduce interest rates and when interest rates remain high, the dollar strengthens.
Goldman Sachs has also clearly said that now Fed will not reduce interest rates before September and now this news has pulled gold down.
How much did it become cheaper in India?
Today the price of 24 carat gold in Delhi is Rs 16,347 per gram.
Gold futures on MCX fell ₹283 today to Rs 1,61,506 per 10 grams.
Silver has also fallen by ₹ 1,991 to Rs 2,66,500 per kg, this is a small relief after the rise of the last few days.
But the question is whether to buy now?
Look, if the war drags on for a long time, gold will rise again! If the Strait of Hormuz is closed, both oil and inflation will go out of control, the demand for gold will increase again and now the wedding season is near, domestic demand will increase. As the rupee is weakening, even if gold becomes cheaper abroad, it will not have much impact in India.
What do experts say?
Experts say that the story of strong dollar and interest rates is currently a hindrance for gold, even if there is a war going on on the ground, meaning gold will get the benefit of the war only when the dollar is weak.
Experts say that instead of buying all at once, buy little by little – if you are investing for the long term then this fall is a good opportunity. But if you want short-term profits, then take a decision after looking at Friday’s PCE data and next week’s Fed signals.
Also read:
Outcry in this neighboring country of India, first inflation broke its back; Now another shock in the midst of war in Iran