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.

Also read: Donald Trump’s government will now cut the pockets of common Indians! Know what is ‘The One Big Beautiful Bill’?

Gold Price: In the last few days, there has been such a jump in gold prices worldwide that the eyes of investors are now directly on the figure of 1 lakh. The growing business conflict between the US and China and the US dollar weakness has once again made gold “safe haven”.

New record in domestic market

Gold prices on MCX reached 93,940 per 10 grams on Friday and finally closed at 93,887. This is a gain of 5,757 in a week, or about 6.53 percent. Earlier this rate was Rs 88,130 per 10 grams.

The same condition of international market

Spot gold in the global market has touched a height of $ 3,245 an ounce and closed at $ 3,236.21. That is, a weekly lead of 6.41 percent. For the first time, the dollar index fell below 100 in two years to 99.89.

Why are gold prices rising?

America-China trade war

The Trump government has imposed heavy taxes on China, while the rest of the countries have been given temporary relief. This has a direct impact on the trade relationship. The US has imposed a tax of up to 145 per cent on some Chinese goods and China has also retaliated and has implemented rates ranging from 84 per cent to 125 per cent.

Dollar weakness

The dollar slipped below 99, giving gold support. When the dollar is weak, investors run towards gold.

Fed rate cut expected

Inflation figures in the US have come weaker than expected, which is believed that US Federal Reserve can cut interest rates this year. This has increased the glow of gold.

What will happen next?

According to The Mint’s report, experts believe that now the price of gold can touch the level of 95,000 to 95,500. In the long term, they can also touch the figure of 1 lakh per 10 grams. Internationally gold can go to the range of $ 3,280 to 3,320 doers.

Also read: A decision by Donald Trump changed luck! Investors investing money in this company became rich in a single day