Gold saw a decline on 12 February. This has led to the price of gold below the record height. The reason for this is the statement of Jerome Powell, chairman of the US Central Bank of Federal Reserve. They have rejected the possibility of early reduction in interest rate. Now the investors are eyeing the data of infection in the US. Inflation data is coming to the US on 12 February. Spot gold fell 0.1 percent to $ 2,895.38 an ounce. On February 11, it reached $ 2,942 an ounce.
Gold softening in domestic market too
Here, gold was also seen in India. In the Commodity Exchange MCX, the gold futures fell by Rs 499, or 0.58 per cent, to Rs 85,024 per 10 grams. Gold pressure was also seen in big cities of India. The price of 24 carat gold in Mumbai was Rs 86,670 per 10 grams with a weakness of Rs 710. Experts say that the decline in gold could also be due to profit booking. The reason for this is that in the last 4-6 weeks, gold has gained great rise.
Inflation in America will affect gold
Powell said on February 11 that the American economy is good health. Therefore, the Federal Reserve is not going to reduce the interest rate soon. However, he said that if the inflation decreases and the employment market is seen to be weak, then he can decide to reduce interest rates. Market analyst says that after Powell’s statement, the eyes are on the data of inflation on 12 February. If inflation increases, it means that the interest rate is not going to decrease soon. This can increase the pressure on gold.
Gold ahead or softening?
KCM Trade Chief Market Analyst Tim Waterr said that the profit-booking is seen after the gold reached the all-time high. However, the trend of boom in gold has not been affected. He said that if the tariff policy of US President Donald Trump remains aggressive then gold will be seen in gold. The reason for this is that Trump’s tariff policy shows the danger of increasing trade war in the world. When this happens, the glow of gold will increase.
What should you do?
The question is, should you use the opportunity to fall gold for investment? Market experts say that even though gold has seen a decline on February 12, Gold Outlook is positive. Its price in the global market will soon cross $ 3,000 an ounce. Its impact will also be seen in India on its prices. In such a situation, investors can invest in gold. Especially if an investor’s investment portfolio does not include gold, then he can invest in gold on every decline. Investors can invest through gold mutual funds or gold ETFs. If you cannot invest lump sum, then it would be fine to invest in gold through SIP.