Gold has returned. On July 14, it reached a height of three weeks. US President Donald Trump’s tariff policy is increasing uncertainty in the world. Its effect is visible on gold. Trump has threatened to impose 30 per cent tax on the European Union and Mexico. If this happens, the supply chain can be affected. Many commodity prices may increase. This can once again cause inflation uncontrollable. For this fear, investors are investing in Gold, increasing its prices.
On July 14, gold was running in the international market at $ 3,354.83 an ounce. However, in early trade, it reached the highest high level after June 23. The US Gold Futures rose 0.2 per cent to $ 3,371 an ounce. Here, in India too, there was a tremendous boom in gold. In the Commodity Exchange MCX, gold was running at Rs 98,171 per 10 grams in the afternoon with a jump of Rs 353, or 0.36 per cent, Rs 98,171 per 10 grams.
Experts say that after several weeks of consolidation, Gold has started walking on the path of fast. Gold is getting support from Trump’s tariff policy. “Oanda senior market analyst Calvin Wong has said,” Due to uncertainty in the trade policy of the US government, shopping in gold has returned again. ” He said that gold outlook in short term looks positive. The next resistance for gold is seen at $ 3,435 after closing above $ 3,360 an ounce.
Tup on July 12 threatened to impose 30 per cent tariffs on Mexico and European Union from 1 August. The Mexico and the European Union have described it as unfair and obstructing. However, the EU has said that it will interact with the US and try to settle the case. Meanwhile, investors are awaiting June data related to American economy. Markets hope that by December the US central bank may reduce the Federal Reserve interest rate by 50 basis points. This will affect the price of gold.
The glow of gold increases in the environment of reduced interest rates. Experts say that retail investors should include bullion in their portfolio. Investment portfolio can be done in 10-15 percent investment bullion. Investors can invest in the gold scheme of gold ETFs and mutual funds. Good returns can be achieved in the long term in investing from SIP. Mutual fund companies allow to invest in gold in a very low amount than SIP.