June 11 (Punjab Khabarnama) : Due to delay in interest rate cut, more than expected job creation in the US and reduced demand for gold in China, gold prices in India along with the international market have fallen sharply in the last three days. Gold has fallen by more than 6% i.e. Rs 3300 from its all-time high and experts say that if the central bank of China does not buy gold even in June, its prices may fall further.
In the last three days, the price of 10 grams of 24 carat gold has fallen by more than Rs 2200 in MCX and domestic bullion markets. In the global market, spot gold had reached a record level of $ 2,449.89 per ounce on May 22, which is now below $ 2300. Similarly, the price on MCX was at a record high of Rs 74,442, which is now below Rs 71,000. However, for the first time in May, investment in gold ETF has increased globally. According to Amfi, in May, investment in gold ETFs in India also reached a 4-month high. A net investment of Rs 827.43 crore was made in the country’s total 17 gold ETFs during May.
That’s why gold prices are falling
The impact of the brake on gold purchases by the Central Bank of China is being seen on the prices. According to the data of the People’s Bank of China, there was no change in China’s gold reserve in May this year. Whereas before this, China’s gold reserve had increased for 18 consecutive months. In April, China’s gold reserve increased by 2 tonnes to 2,264 tonnes. However, this was the lowest increase in China’s gold reserve in 18 months. Compared to October 2022, this is about 319 tonnes i.e. 16.5% more. The Central Bank of China increased its gold reserve by 225 tonnes during the year 2023, due to which gold prices skyrocketed.