The price of gold fell nearly 2 per cent on Thursday to a two -week low. Gold prices have declined due to reduced trade risk and increase in risk. Apart from this, the strengthening of the dollar has also affected prices. After reaching a lower level on April 15, the spot gold was reduced by 2 per cent to $ 3,22.66 an ounce today. US futures gold was reduced by 2.7 percent to $ 3,230.80.
However, the dollar index recorded a rise of 0.3 per cent, leading to the price of gold in the dollars of buyers keeping other currencies.
UBS analyst Jiovayani Stanovo said, “Currently some trade deal will be done soon, which will maintain low fees.” He said that with this optimism, the dollar is under pressure on gold.
US President Donald Trump said on Wednesday that the deals with India, South Korea and Japan are likely. He had said that apart from this, there is good hope of dealing with China. It is noteworthy that the Chinese media institute wrote on its social media platform that the US has contacted China to talk on Trump's 145 per cent of the counter duty.
This is the first time in three years in the first quarter of the current financial year when the US economy has softened. The reason for this is being explained as a boom in imports, as businesses have tried to avoid levying high duty.
But the Federal Reserve has indicated the policy makers that there will be no change in short -term interest rates until the central bank's 2 per cent target of inflation is approaching the target or the possible decline in the job market is clearly indicated.
Here, investors are also waiting for the non-agricultural payroll report on Friday, which will decide the direction of Fed's policy. Jiovaini Stanovo said, “Fed can further cut rates this year when the parole report is weak and gold can again reach $ 3,500 an ounce in the coming months.”
In Reuters' quarterly survey, analysts have estimated the annual average price of gold to be more than $ 3,000 for the first time. The price of yellow metal, which protects from political instability and financial upset, reached $ 3,500 last week. At the same time, the price of spot silver decreased by 1.8 per cent to $ 31.99 an ounce and the price of platinum fell 1 per cent $ 956.63 and the price of Paldium increased by 0.3 per cent to $ 941.10.
First Published – May 1, 2025 | 10:33 PM IST
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