Gold has reached the highest level of six years. The price of gold in the global market and the Indian market is steadily rising. Gold has been continuously getting stronger since last six days. After all, what is the reason for the consistent strength of this price of gold, let’s know.
On Tuesday, gold rose steadily for the sixth consecutive day and reached market at 34,450 per 10 grams. The August expiry on the Multi Commodity Exchange (MCX) reached Rs 3,4811 per 10 grams with a rise of Rs 370, or 1.07 per cent from the previous session. Prices were upto Rs 34,893 during the session. In global markets, gold in New York rose by 0.53 per cent to $ 1,428.05 an ounce, and for the first time since 2013, it crossed the psychological level of $ 1,400.
These are international reasons
In fact, due to geopolitical tension between the US and Iran, the trade war in America-China and the slowdown of the global economy, investors have now been forced to bet on safe assets. People are now relying on secured instruments such as Gold as opposed to stock market, due to which gold prices have reached a high of six years. The demand for this valuable metal increased last week when the US Federal Reserve indicated that it will reduce the interest rates in the future of the Federal Open Market Committee (FOMC) meetings in 2019. This trend of the U.S. Fed weakened the dollar, which led to cheaper gold.
In the report of the Kedia Advisory, it has been said on Tuesday that ‘gold is constantly expensive, and prices are reaching a high of six years because weak dollar, business concerns and mounting US-Iran tensions make gold a safe asset’.