Gold prices were mixed with mixed trend on 1 August. The international market showed stability in gold prices, while there was a decline in gold futures in India. The strengthening of the dollar has affected gold prices. So far this week, gold has fallen by 1.5 percent in the international market.
Pressure on gold futures in MCX
In the international market on 1 August Spot Gold The prices were running at $ 3,292.18 an ounce without special changes. However, the US Gold Futures were 0.2 per cent with a mild weakness of $ 3,342.10 an ounce. Here, the Commodity Exchange in India showed pressure on gold futures at MCX. In MCX at around 11:30 pm, the gold futures fell 0.33 per cent i.e. Rs 323 to Rs 97,764 per 10 grams.
Gold shines firmly in the dollar index
Experts say that the dollar is strengthened compared to the world’s major currency. The dollar index has reached the highest level since May 29. This has affected gold prices. Buying gold in another currency firmly becomes expensive. The aggressive trend of the US central bank Federal Reserve has strengthened the dollar. Fed did not change the interest rate on 30 July. Gold increases when interest rates decrease.
At present, the pressure on gold is expected to continue
In Marex, Analyst Advard Mer said that gold has been in the radius of $ 3,250-3,450 an ounce for about two months. It can break the lower level of this range. This means that the pressure on gold may continue at the moment. This is a good chance to invest in gold. Experts say that investing at a low price in an asset increases the chances of making more profits.
Should you invest?
Financial Advisors say that some investment in gold is necessary for diversification of investment portfolio. Gold’s share in investment portfolio can be 5–10 percent. Gold ETFs and Mutual Funds can also be invested in gold schemes. These can also be invested through SIP every month.
Benefits of investment in gold
Investment in gold provides protection to your investment portfolio. In the event of a sharp decline in shares, it protects you from harm to some extent. Gold is considered the best means of safe investment.