Gold prices fell flat! Big upheaval in the market after record rise, gold suddenly became cheaper by thousands of rupees

If you are also thinking of buying gold or investing in the bullion market, then there is a very big and shocking news for you. A big reversal was seen in the gold market on Friday, which gave a big shock to the investors. Gold prices, which were skyrocketing for the last several days, have suddenly seen a huge decline. In futures trading, the price of gold has fallen drastically to Rs 1.58 lakh per 10 grams.

Market experts say that rising international crude oil prices, ongoing tension in West Asia (Middle East) and uncertainty over interest rates across the world have scared investors. For this reason, huge pressure is being seen on gold prices.

Gold for August delivery fell badly on MCX

The figures that have come out from the Multi Commodity Exchange (MCX) are going to provide some relief to the gold buyers. On MCX, the price of gold contract for August delivery closed at Rs 1,58,326 per 10 grams with a sharp fall of Rs 1,221, or about 1 percent. During this decline, a huge turnover of 8,346 lots was recorded in the market.

Market experts and analysts believe that after the record breaking rise in gold prices in recent times, investors have booked profits extensively. The clear effect of this selling done by investors was seen in the futures market and the prices came down.

Tension and inflation in West Asia become the biggest concern

Choice Broking’s Commodity Fundamental Analyst Pinky Yadav has shared her special opinion regarding this market movement. He said that the continuous geopolitical tension in West Asia has made investors very alert and cautious. At this time, the eyes of the entire global market are focused on what impact these conditions in the Middle East can have on inflation and global interest rates across the world.

According to Pinky Yadav, investors are currently completely avoiding taking any kind of big risk and are keeping an eye on economic indicators around the world. This is the biggest reason why the fluctuations in the gold market, which is considered a safe investment, have increased a lot.

Stability of dollar index and condition of international market

Experts said that the demand for safe investments remains constant in the market, due to which the dollar index remains stable around 99.4. It is generally seen that a strong or stable dollar has a direct impact on gold prices. Due to strengthening of dollar, it becomes expensive to buy gold in other currencies of the world, due to which its global demand starts weakening and prices fall.

Not only in the domestic market of India, but also in the international market, the price of gold appeared weak today. On New York’s COMEX exchange, gold futures for August delivery were seen trading at $ 4,488.37 an ounce with a weakness of $ 16.63, or 0.37 percent.

What will be the move of gold next, where will the attention be kept?

Bullion market experts believe that the price of gold in the coming days will depend on certain factors. Now investors are going to keep a close eye on the interest rates of the US Central Bank, new inflation figures around the world, fluctuations of the dollar and the latest developments in West Asia. The future direction of gold prices will be decided on the basis of all these major reasons and this trend of fluctuations in the market may continue further.