Gold Prices Drop to ₹95,073/10 Gram in Futures Trade
The gold prices in India took a hit on Friday, falling by ₹839 to ₹95,073 per 10 grams in futures trade. This decline comes as the US dollar strengthened amid a potential de-escalation of the United States-China trade war. The global gold market also witnessed a slip, with gold futures falling by $40.26 or 1.20% to $3,308.34 per ounce in New York.
In India, the gold prices have been witnessing fluctuations over the past few days. On Thursday, the gold prices were trading at ₹95,912 per 10 grams. However, on Friday, the prices took a sharp decline, falling to ₹95,073 per 10 grams. This is the lowest price point for gold in India since the beginning of the year.
The decline in gold prices can be attributed to a combination of factors. Firstly, the strengthening of the US dollar has made gold less attractive to investors. When the US dollar strengthens, it becomes more expensive for investors to buy gold, which in turn leads to a decline in demand. Secondly, the potential de-escalation of the United States-China trade war has also put downward pressure on gold prices. The trade war has been a major driver of gold prices in recent times, with investors seeking refuge in safe-haven assets like gold.
On the global front, gold futures slipped by $40.26 or 1.20% to $3,308.34 per ounce in New York. This is the lowest price point for gold in over a month. The decline in gold prices has been mirrored in other major gold markets, including London and Zurich.
The fall in gold prices has been welcomed by investors who had been betting on a rise in prices. Gold is considered a safe-haven asset, and its prices tend to rise during times of economic uncertainty. However, with the potential de-escalation of the trade war and the strengthening of the US dollar, investors are now looking at other assets to park their money.
The decline in gold prices has also led to a decline in demand for gold jewelry in India. The Indian jewelry industry is a significant consumer of gold, and a decline in demand can have a ripple effect on the economy. However, industry experts believe that the decline in demand is temporary and that demand will pick up once the trade war is resolved.
In conclusion, the gold prices in India took a hit on Friday, falling by ₹839 to ₹95,073 per 10 grams in futures trade. The decline in prices can be attributed to a combination of factors, including the strengthening of the US dollar and the potential de-escalation of the United States-China trade war. While the decline in prices has been welcomed by investors, it remains to be seen how long this trend will continue.
News Source:
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