Gold prices fell on Friday
Gold prices fell by Rs 1,200 per 10 grams on Friday. This happened due to the sudden ban on gold purchases by the central bank of China. This decline has come at a time when gold prices in the spot market have reached a record high, due to which the People’s Bank of China (PBOC) stopped buying gold for its reserves in May.
In the last few months, the continuous rise in the price of gold was creating problems for people. People need gold for various functions, from weddings to other functions, due to which people bring gold from shops, but due to the continuous rise in the price of gold, people had to face a lot of problems. In the last few months, there was an unexpected rise in the price of gold, which no one had anticipated.The current fall in gold prices will take the breath away from the customers.
There have been several reasons for the increase in gold prices in the last few months:
Inflation: Economic inflation leads to an increase in gold prices as investors invest in gold to avoid the effects of inflation.
Economic recession: Gold is considered a safe investment during economic recession, which increases its demand and prices.
Geopolitical tensions: The demand for gold also increases during times of global geopolitical tensions, leading to a surge in prices.
Federal Reserve policies: Expectations of interest rate cuts by the Federal Reserve also affect gold prices.
Wedding season: The demand for gold increases during the wedding season in India, which increases prices.
China’s demand: The rising demand from China has also led to an increase in gold prices.
Apart from these reasons, changing investor preferences and market uncertainties also affect gold prices. Gold is considered a safe investment, and whenever there is volatility in the market, investors turn to gold.
