Gold touchs over six yr peak, greatest place to speculate, worth anticipating excessive | Gold turns into the most costly in 6 years, investing might be wealthy, perceive the sport in 5 factors


New Delhi: Gold and Silver Price The sky is touching On Tuesday, gold shone by Rs 50 to close at Rs 38470 per 10 grams in Delhi Bullion Market. Due to trade-wise, there has been an increase in the investors' trend towards gold. Therefore, prices are constantly increasing. On August 1, the price of 10 grams of gold was Rs 35710. In the last two weeks, there has been a jump of about 2700 rupees in the price. On 31 December 2018, the price of 10 grams of gold was Rs 32680 in Delhi. In this way, there has been a jump of about 20 percent in the rate so far this year. According to the news agency Reuters, on Tuesday, the price of gold reached the highest level of 6 years. There is a possibility of acceleration in the coming days. Therefore, currently investing in gold will be beneficial in every respect. Let's try to understand some important aspects related to it.

1. India is a major importer of gold. It imports more of its needs. But, in the budget, Finance Minister Nirmala Sitharaman increased the import tax from 10 percent to 12.5 percent. Because of this, a direct impact on the rate was seen.

2. If a country's central bank cuts the rate, then the price of gold rises. The Reserve Bank of India has cut the rate four times so far this year. There is a possibility of further rate cut in the coming days. Therefore, the price of gold will jump. Let me tell you, the rupee is constantly weakening against the dollar. The weaker the rupee, the more expensive gold will be in India.

3. The budget saw a negative effect of increasing the surcharge on the Super Reach people, which also includes FPIs. FPI took thousands of crores out of the market. Just before the budget i.e. on July 4, the Sensex was at 39908 points. But, this morning (9.25 am) it is trading at 37430. Meaning, the Sensex has lost about 2480 points in the last 6 weeks. Millions of crores of investors have drowned. Therefore, it was said by the Finance Ministry that the surcharge increased on the Super Reach people will be withdrawn. Investors are withdrawing money from the stock market and investing in gold because it is considered a safe investment.

4. There is no possibility of positive dialogue in the coming days regarding the ongoing trade war between American and China. Trade talk held in September is also likely to be averted with Trump's recent statement. They have announced to impose more tariffs on goods imported from China. Meaning, the economy will remain in the world economy. The effect of the recession is that China's growth rate has come down. The US Federal has reduced the repo rate. There is also pressure to reduce further in the coming days. Apart from this, central banks of other countries of the world are also cutting rates. In such a rate cut, the price of gold will increase.

5. In this way, investors feel that the world economy is in recession. The trade war between the US and China will continue till the US presidential election (proposed in late 2020). England's growth rate has also decreased due to Breguit. Many more European economies are in the grip of recession. Therefore, safe investment (such as gold) is essential. According to the World Gold Council, many country's central banks are also buying gold. As demand is increasing, the price is increasing.

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