The policy of the Federal Reserve will also be decided by the US President. It is believed that this week the Fed will cut the interest rate by 0.25 percent. But if Trump wins the election, the Fed’s policy will change, then further interest rate cuts may stop. The dollar will strengthen once the rate cuts stop. Due to this effect there will be recession in gold and silver.
The eyes of the bullion and bullion market are now fixed on the US elections. When the festive season ended, the week started with a partial recession. The market is moving in a limited range. The results of the US elections and the exit polls coming before it will directly affect the precious metals market. The market is believing that if Trump wins, there will be a recession in gold and silver and Kamala Harris becomes the President. So gold will increase further. The market is giving special reasons for the US elections and the name of the President to affect the prices.
This is the market equation
- According to bullion businessman Nilesh Sarda, despite a close contest in the exit polls, Trump seems to have a slight upper hand in the elections. The market is assuming that if Trump wins, the trade war will start.
- In such a situation, foreign institutional investors will put their money in bonds. Due to this, the dollar index has remained continuously strong in the past and the US bond yield has also crossed the level of 4.3 percent.
- If Kamala Harris wins, the Fed’s policy of interest rate cuts will continue and the bullion market will try to touch its high level again.
- On the other hand, China is also watching the US elections before releasing a stimulus package for its economy. What type of package will be depends on the US presidential election.
- Due to all this, fluctuations can be seen in the prices of gold and silver in the coming three days. Other experts are saying that the market had gone to higher levels in the past.
- Now he is looking for the reason for the correction which he is seeing in the US elections.
- Considering the bullish trend of gold and silver, these analysts are saying that in this correction the price of gold may reach 77000 and silver 92000. After this there will be a rise again.
Gold prices fell by Rs 100 in Indore bullion market on Tuesday due to weak buying. Gold price fell to Rs 80600 per ten grams. Whereas silver Chaurasa remained stable at Rs 95900 per kg. At present the subscription is very weak in the market. Gold futures on Comex were seen trading at $ 2745 per ounce after going up to $ 2737 and then at $ 2724 per ounce and after going up to $ 32.61, silver was seen trading at $ 32.67 and then at $ 32.24 per ounce.
Indore’s closing price – Gold Cadbury Rawa in cash was quoted at Rs 80600 Gold (RTGS) 80500 Gold (91.60 carat) (RTGS) Rs 73500 per ten grams. On Monday, gold had closed at Rs 80700. Silver chaurasa was sold in cash at 95900, silver chaurasa (RTGS) was sold at 95900, silver taunch was sold at Rs 96000 per kg and silver coin at Rs 1100 per piece. On Monday, Silver Chaurasa Cash had closed at Rs 95900.
