Gold Price: Weakness in the US dollar and expectations of a possible interest rate cut by the US Federal Reserve next month have once again attracted investors towards safe investment instruments.
Gold and silver prices have risen, will prices rise further or fall? Buy or wait.
Gold Price: Gold and silver prices rose on Monday. Weakness in the US dollar and expectations of a potential interest rate cut by the US Federal Reserve next month have once again attracted investors to safe-haven investments.
On the afternoon of November 10, gold was trading at Rs 1,23,057 per 10 grams on MCX with a gain of 1.64%, while silver jumped 2.66% to reach Rs 1,51,657 per kg.
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Why are the prices of gold and silver increasing?
Several factors are behind the rise in gold and silver prices:
- Due to global economic uncertainty and expectations of reduction in interest rates in America, investors in the market have turned towards precious metals.
- The weak US dollar has made gold and silver cheaper for international buyers, leading to increased demand.
- Concerns about the stability of the US economy have led investors to look to safe-haven options, such as gold and silver.
What should investors do?
Market experts say that due to global uncertainty and wedding season, the prices of precious metals may remain strong in future also.
- It is still an attractive option for long-term investors, but it is important to keep short-term fluctuations in mind.
- Experts suggest that support levels and market direction should be considered before buying.
- Jewellers believe that retail demand will remain strong due to the wedding season, which will keep the pressure on prices upwards.
How are the prices of gold and silver decided?
Gold and silver prices depend on several domestic and international factors:
- Dollar-Rupee Exchange Rate – Gold and silver prices in the international market are fixed in dollars, hence the weakness of the rupee increases the prices in India.
- Import Duty and Taxes – Most of the gold is imported into India, due to which Import Duty, GST and local taxes affect the price.
- Global events – Events such as war, recession, or changes in interest rates directly affect the prices of precious metals.
- Cultural and seasonal demand – Gold in India is not just an investment, but also a source of tradition. Demand surges during wedding and festival seasons, leading to a surge in prices.
- Inflation and market risk – When inflation rises or there is instability in the stock market, investors consider gold as a safe option, which leads to a rise in prices.
Currently, both gold and silver remain bullish. However, the market will remain volatile for short-term investors. Long-term investors and consumers shopping for weddings should exercise caution and monitor market trends.
