Brokerages say that due to global political uncertainty and a possible economic slowdown in 2023, gold demand will increase this year and the price of 10 grams of gold may touch Rs 62,000. Commodity expert Shyam Sunder said about this…
“Nobody can say with certainty that the price of gold will go that high. International gold prices depend on important decisions such as interest rate hikes by the US Federal Reserve. Depending on that, the price of gold in India is also fixed.
The US Federal Reserve decides on its interest rate changes based on economic data, including inflation. As inflation is high in the US, the US Federal Reserve is raising interest rates. Their target is to bring inflation under 2%. Their journey is towards this.
Generally, when interest rates are raised, the number of borrowers also increases and some practical problems arise. To prevent this, the US Federal Reserve reduces economic activity, resulting in economic stagnation. Besides, the Russia-Ukraine war is affecting the supply of many commodities, including crude oil. When gold is bought at higher prices in gold-demanding countries, inflation also increases. It will be reflected everywhere.
Henceforth, interest rate hike by the Federal Bank of America, Russian-Ukraine war, international inflation, local inflation and the value of the Indian rupee will take the price of gold to the next level,” he said.