Gold Price: Big fall in gold prices after Bank of Japan interest rate hike, know today’s rate

Mumbai. A fall in gold prices was seen in the domestic futures market on Friday morning, the last trading day of the week. The reason for this was that the Bank of Japan (BOJ) increased its interest rates, after which investors started withdrawing profits. On the Multi Commodity Exchange (MCX), gold for February delivery fell 0.56 percent to Rs 1,33,772 per 10 grams.

At the same time, silver prices also showed weakness in early trade and March delivery silver fell by 0.26 percent and was seen trading at Rs 2,03,034 per kg. However, later its prices saw an increase. The fall in precious metals prices came after the Bank of Japan raised its key interest rate to 0.75 percent, the highest since September 1995.

Although the market was aware of this decision, investors still booked profits. This decision affected the international markets and its effect was also visible on the prices of precious metals like gold and silver. Inflation report from America also pulled down gold prices. The inflation rate in America was 2.7 percent in November, while experts expected it to be 3.1 percent. Generally, gold is considered a means of protection from inflation, but when inflation is low, the demand for gold decreases and there is pressure on prices.

Apart from this, the US dollar also strengthened slightly. The dollar index rose 0.10 percent and neared a one-week high. When the dollar strengthens, it becomes more expensive for people in other countries to buy gold, which reduces its demand. Experts say that the decisions of central banks, America’s low inflation and strong dollar, all these factors together pushed down the prices of gold and silver in early trading on Friday.