Gold declined on 8 May. Gold futures in the Commodity Exchange MCX open with a decline. Then it remained under pressure all day. Gold, showing strength in the international markets in the morning, later came under pressure. It is said that the reason for this is the statement of US President Donald Trump, in which he has said that he can announce a trade deal with Britain. If this happens, the tariff war will decrease.
Gold slipped in the country and abroad
Mcx Gold futures in the evening (Gold Futures) It was running at Rs 96,620 per 10 grams, declining Rs 470, or 0.48 per cent. Gold fell 0.6 per cent to $ 3,344 an ounce in the international market. The US Gold Futures were 1.2 per cent weakness to $ 3,350 an ounce. Wisdomi Commodities Strategist Nitesh Shah said, “It is believed that the US is going to announce the trade deal. This will strengthen the dollar. This means that the gold shine will decrease.”
Pressure on gold with expectation of trade deal
Trump is expected to announce a trade deal with Britain late in the evening according to Indian time on 8 May. The US President has posted a post on the social media platform Truth Social about this. It states that he will hold a press conference to announce a big deal. On the other hand, there is going to be a conversation between the US and China in Switzerland regarding tariffs. If this conversation is successful, the trade war can end to a great extent. In such a situation, the demand for gold may be affected.
Gold demand in India is expected to increase
Gold is considered the safest medium of investment. This year, the reason for the tremendous boom in gold is Jio Political Tension and Trade War. However, experts say that if the fight with India and Pakistan increases, then the demand for gold in India may increase. Ole Hansen, head of Saxo Bank’s Commodity Strategy, said that the increasing tension with Pakistan could affect gold demand. However, it is difficult to tell how much demand will increase.
What should you do?
Experts say that there is currently pressure on gold. But its outlook is positive. Investors should include it in their portfolio, considering it as the safest investment source. Investment portfolio may have gold up to 10-15 percent. Today it is very easy to invest in gold. Gold ETF and Mutual Fund’s gold scheme can be invested at home. The best thing is that SIP can also be invested in them. Investors can invest a fixed amount in gold through SIP every month.