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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Gold Price: After the fall of the last two weeks, there was a strong jump in gold this week. In the domestic market, the rate of MCX gold rose by more than 4 per cent, while the price of spot gold gained 2.65 per cent. Gold closed at Rs 96,535 per 10 grams on MCX on Friday, which is a gain of Rs 3,835 against the previous week as against Rs 92,700.

The fall of rupee increased domestic market

According to experts, the fall of Indian rupee in this gold rally also played an important role. The rupee weakened more than 1 per cent against the dollar last week, causing gold in the domestic market. Because of this, investors made gold purchases as a safe option.

America’s uncertainty became a big reason

The US Federal Reserve has kept the interest rates stable at 4.5 per cent. Apart from this, the impact of economic instability in the US and increasing tariffs is clearly visible on the demand for gold. The cut of 25 basis points of Bank of England has also supported the gold price.

Border tension and global tariff war also causes

At present, investors are scared of the market uncertainty. The threat of foreign films by America on foreign films and pharma sectors has increased tension in the global market. At the same time, the increasing tension on the India-Pakistan border has also intensified the demand for safe-hevan demand in the domestic market. However, the news of the US-China trade tox and the new trade deal of the US-UK has given the market a little stability. But the global confusion is still intact.

Now buy or stop? Know the outlook of gold

Currently, the rate of gold can be between 94,500 and 97,500. If it breaks the level of 97,500, then it can also go up to 98,780 or a record high 99,358 rupees. At the same time, gold is supported at $ 3,280 an ounce internationally, which can open up to $ 3,420.

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