America again cried about inflation, gold will become cheaper by 6 to 7 thousand rupees! , US again cried about inflation, gold will

Can the price of gold become cheaper by Rs 6 to 7 thousand in the month of June?

Gold and silver prices are at record levels. Everyone is predicting that the prices of gold and silver will continue to rise. Some are measuring the level of Rs 75 thousand by the end of the year. Some say that by Diwali the price of gold will reach the level of Rs 72,500. No one is saying that gold will be cheap. If it is said that the price of gold may fall by 6 to 7 thousand rupees in the month of June? So what would you say? Yes, you are surprised, aren’t you? Today this very thing will be discussed amid the rise in gold prices.

The main reason for the rise in gold prices is geopolitical tension. Especially in the Middle East, the way Iran has stood against Israel. Besides, America has also been alerted for this possible war. The tension between Russia and Ukraine has also not reduced. Apart from this, aggressive buying from China was seen. Most importantly, the talk of possible interest rate cut by the US Central Bank Fed Reserve has been floating in the air for a long time.

Now the biggest question is, what can happen in the month of June that gold prices may see a decline of 8 to 10 percent from the current level i.e. a fall of 6 to 7 thousand rupees? In fact, the most important policy meeting of the US Central Bank Fed Reserve is going to be held in June. In this meeting, the stance of the Central Bank will decide whether the price of gold will rise or fall. Let us also tell you that if the US Fed’s stance in the June meeting remains as we are thinking, then it will bring a lot of relief to those people who have been waiting for gold to become cheaper.

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What is the current situation?

In the next few days, inflation figures in America will be in front of everyone. The previous inflation figures were also above 3 percent. Whereas the target of the US Fed is to bring inflation to 2 percent. However, investors have definitely got some relief from the blockbuster employment figures last week. But American investors do not seem optimistic at all about the upcoming inflation data. Due to which the US Fed has not been able to make any cut in interest rates so far in the current year. Last year, the US Fed had talked about 3 cuts in interest rates in the year 2024. One quarter of the calendar year has passed. Interest rates have not been cut. The only possibility being raised is that the Fed is keeping an eye on inflation rates and will cut interest rates?

All eyes are on June meeting

Not only American investors but the eyes of the entire world including India are fixed on the June meeting of the US Fed. In fact, some experts have even started saying that inflation figures will not come down till June. Due to which the US Fed may have to postpone its interest rate cut plan till October. On the other hand, some experts also say that after the 25 basis point cut in June, the Fed may keep its stance hawkish in the coming months. Which may have an adverse effect on the dollar index and bond yields. This means that despite the cut in interest rates, both may see a rise.

What will be the effect on gold?

From here the real game can be seen in gold. If the US Central Bank does not make any change in interest rates in the month of June. So the dollar index and bond yield will increase. After that, a fall of 8 to 10 percent may be seen in the prices of gold. Even if the Fed cuts interest rates by 25 basis points in June and re-stabilises its stance on interest rates for the coming days, a fall in gold prices will be seen. Experts say that gold prices have taken advantage of the cut in interest rates. Even if interest rates are cut in June, there will not be much impact. After that, it will depend on the Fed’s stance as to what it says for the future.

So gold will be cheaper by 6 to 7 thousand rupees?

Ajay Kedia, Director of Kedia Advisory, says that the month of June is going to be very interesting for gold. The main reason for this is that the June meeting will decide the future of gold prices. In the last 180 to 200 days, there has been an increase of 27 percent in the price of gold. In such a situation, correction is due in gold.

But no factor for this correction has come to light yet. From international geopolitical tension to buying by China and possible cuts by the Fed, gold prices seem to be supporting. In such a situation, the Fed’s stance in the June meeting will decide the price of gold.

Giving information, Ajay Kedia said that CME Fedwatch tool suggests that the probability of Fed rate cut in June has reduced to 51.1 percent. This means that if the Fed does not make any changes in interest rates in June, there will be a fall in the price of gold.

He clearly said that if the Fed again presses the pause button on the Fed rate in June after showing the inflation data in the June meeting, then the trigger of correction in gold will be pressed and a fall of 8 to 10 percent will be seen in the prices. This means that a fall of 6 to 7 thousand rupees may be seen in the prices of gold from the current level. This means that the price of gold is likely to again fall between Rs 64 to 65 thousand.

record high gold prices

By the way, gold prices had reached a record level on Tuesday. According to the data, the price of gold in the futures market of the country had reached Rs 71,739 per ten grams, which is the new lifetime high of gold. An increase of 6 percent has been seen in the price of gold in the month of April. Whereas in the current year, investors have earned up to 12 percent in the price of gold. Till the market closed on Tuesday, it was seen at Rs 71,331 per ten grams.

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Brijesh Pratap
Brijesh Pratap

Hi, I am Brijesh Pratap, a content creator and WordPress website designer, I have been in content writing for more than 3 years. I specialize in creating engaging articles. As a WordPress expert, I design websites for businesses and bloggers, aiming for both visual appeal and impactful content. Join me on this journey of creative exploration and effective online solutions.

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