Gold-Silver Rate Today: Dollar strength and inflation reduced the shine of gold and silver, investors upset due to fall on the second day

US Inflation Impacts Gold-Silver Rates: In today’s times, amid the huge turmoil around the world, the shine of gold and silver also seems to be diminishing. Recent US inflation data has weakened expectations of interest rate cuts, making investors a bit worried and cautious. In this difficult period of impact of US inflation on gold prices, the strength of the dollar has started putting severe pressure on the prices of precious metals. This fall in the price of gold amid the ongoing war in the Middle East and skyrocketing oil prices is quite shocking news for investors.

Price situation in domestic market

During morning trading in the Indian market today, April gold futures on MCX fell by 0.10 percent to Rs 1,61,660 per 10 grams. The situation of silver was also similar and its May futures were seen trading at Rs 2,66,969 per kg with a huge fall of 0.57 percent. This continuous fluctuation in the market has put the people doing commodity trading in deep confusion and they are now stepping into the market with great caution.

Gold troubles globally

In the international market of Singapore, gold prices also declined by 0.9 percent and fell to a low of $ 5,132.76 an ounce. Globally, silver also fell drastically by 1.5 percent due to which it was trading at $84.44 and other metals were also affected. Due to the strengthening of the dollar index by 0.3 percent, big investors around the world have started giving priority to the dollar over gold as a safe investment.

Is this just a short pause?

According to expert Hebe Chen, this sudden decline in gold prices is not a permanent defeat but a very short breathing pause for the market. Since the beginning of the year, gold has given excellent returns of about 20 percent to its investors, due to which its long-term economic shine is still completely intact. Due to geopolitical tensions and fears of rising inflation in the future, there is every possibility of a huge surge in the demand for gold again in the coming weeks.

Inflation and interest rate pressure

With the US Federal Reserve unlikely to cut interest rates in the near future, the road ahead for gold now looks a bit difficult and challenging. Investors are currently considering other safe options to strengthen their financial portfolio by converting gold into cash which is a common market behavior. The European Union’s warning that inflation could cross 3 percent has deepened inflation concerns among investors globally.

Also read: Share Market Crash: Chaos in the stock market, Iran war and crude oil crossing $100 broke the back of investors.

impact of war and instability

Since the fierce war that started on February 24, the gold business has been quite volatile and the upward trend in its prices has now slowed down to a great extent. The rise in oil prices due to the war has increased the risk of inflation across the world, which is directly impacting the global demand and supply of precious metals. Although gold has always been a strong support in times of war, currently the strong dollar has attracted investors, winning this market battle.