By Admin 
Gold Price: Gold, which was recently at all time high of one lakh per 10 grams, has now slipped below 92,000. On May 16, the June gold contracts on MCX recorded a decline of more than 1 percent. It is believed that the biggest reason for the fall in gold prices is to reduce the trade tension between the US and China.
In fact, both countries have reduced the tariff imposed on each other’s goods for 90 days under mutual agreement. Due to this, the attitude of investors has turned from safe investment ie gold and risky assets.
Strong dollar also dropped gold price
The dollar index is getting stronger at the time of the fourth consecutive week, which makes gold expensive for other currency holders and its demand decreases. This is the reason that gold prices have declined in the international market as well. Talking about Spot Gold, it has slipped up to $ 3,210.19 an ounce in the US market, which shows a decline of about 3 percent this week. This is the biggest weekly decline after November 2024.
No relief from US Federal Reserve policy
Experts say that there are no indications of cutting interest rates from the US Fed, which has reduced enthusiasm in the bullion market (gold purchasing). When the interest rates do not decrease, the attraction of gold decreases because it increases carry cost.
What are technical charts saying?
According to a report published on The Mint, gold is now at the lower end of the 50-day moving average limit, which was continuously supporting since November 2024. If this support breaks, the decline may be deepened. In this report, analysts said that $ 3,136 is an important level. If this level breaks, the decline can go up to $ 2,875–2,950 an ounce.
At the same time, in this report, some experts have told that as long as gold is below 94,000, weakness will remain. But, if gold breaks the level of 89,500, then the next big support will be at 85,000.
What to do investors?
The price of gold in the dollar term is facing support at $ 2,940 and resistance at $ 3,320. Investors will have to pay attention to the movement between it. If you are a long -term investor, this decline can be seen as an opportunity, but short -term traders should be alert at the moment. There is uncertainty in the market and a few days to come can be decisive for trend reversal.
Disclaimer: (Information provided here is being given only for information. It is necessary to tell here that the investment market is subject to risks. Always consult expert before investing as an investor. Never is advised to invest money from Abplive.com.
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