Gold saw a decline on 26 May. The reason for this is believed to be US President Donald Trump’s decision to postpone the tariff on the European Union. This has reduced the concern of investors slightly. Both domestic and foreign markets saw a decline in gold. The Gold Futures at the Commodity Exchange MCX at 11:39 pm were Rs 656, or 0.68 per cent, to Rs 95,765 per 10 grams. Spot gold fell 0.3 per cent to $ 3,346 per 10 grams in the international market. The US Gold Futures also had a weakness of 0.6 per cent to $ 3,345.80 an ounce.
Trump posts tariff’s decision on Europe
Capital.com’s financial market analyst Kylie Rodda said, “The market has breathed a sigh of relief after postponing the tariff on the EU. This is showing softening in gold.” On 25 May, Trump announced to increase the deadline for tariffs on Europe till 9 July. Indeed, the head of the EU’s executive body said that it needs a little more time to negotiate the deal with the US.
Gold reached 2 weeks height on 23 May
On May 23, the price of gold reached a height of two weeks with a rise of more than 2 per cent. Experts say that there is still trade positive in gold. In America, the picture not clear about tariffs will affect the dollar. This will increase the interest of central banks in the world in gold. On May 23, the rapid bounce in gold was the announcement of the trump of the iPhone maker Apple to impose 25 per cent tariff on products. However, he withdrew the decision on 25 May.
Gold is getting support due to weakness in dollar
Dollar weakness continues. It has reached a one -month low. Weakness in dollars makes it cheaper to buy gold in foreign currency. This increases the glow of gold. Experts say that the glow of gold in the long term is expected to remain sharp. Due to Trump’s tariff policy, gold will remain a major medium for hedging. Cama Jewelery MD Colin Shah said that gold was 3 per cent up last week.
Also read: Gold Rate Today: Gold becomes cheap on Monday, know what was the gold rate of 26 May
Should you buy?
Experts say that gold prices may continue to fluctuate in short term. However, its outlook is strong in the long term. Investors can use every decline to invest in gold. According to experts, the investment portfolio should have a 10–15 per cent stake in gold. This portpolio gets diversification. This has a low impact of the subtlement in other asset classes like shares on the portfolio.