GOLD WITNESSED BIGGEST SINGLE DAY FALL SINCE JUNE 2021📉📌
Gold prices in India have taken a hit after the Federal Reserve signaled a potential rate hike. This news has led to a decline in gold prices, with 24-karat gold currently trading at approximately ₹80,330 per 10 grams.
Historically, gold prices have been influenced by various factors, including supply and demand, central bank policies, inflation, currency strength, geopolitical tensions, interest rates, market sentiment, and technological advances. The recent development with the Federal Reserve has added to the downward pressure on gold prices.
Gold recently experienced its largest single-day drop since June 2021, with prices plummeting by ₹790.00 in various cities like Delhi, Chennai, Bangalore, and Kolkata. This significant decline is likely linked to the market turmoil following the Indian election results, which contradicted exit poll predictions and caused panic among investors.
Key Factors Affecting Gold Prices:
- Supply and Demand: Changes in mining output, recycling rates, and industrial demand impact gold availability.
- Central Bank Policies: Buying or selling activities by central banks influence gold prices.
- Interest Rates: Rate hikes, like the one signaled by the Federal Reserve, can reduce demand for gold.
- Geopolitical Tensions: Uncertainty drives investors towards safe-haven assets like gold.
Keep in mind that gold prices can fluctuate rapidly due to various market and economic factors. For the latest updates and analysis, consider consulting reputable financial sources.
