Top News

News India Live, Digital Desk:Usually, during times of crisis, investors run towards gold as a ‘safe haven’, but this time the market mathematics has changed.

5 big reasons for sluggishness in prices

Strength of Dollar (Strong US Dollar): Whenever global volatility increases, investors invest in gold as well as the US dollar. At present the dollar index has become quite strong. Since gold is purchased in dollars in the international market, the dollar becomes expensive for other countries to buy gold, which puts pressure on both demand and price.

Liquidity and Margin Call (Liquidity Stress): At the beginning of the war, there was a huge decline in the stock markets (Sensex & Nifty). In such a situation, big investors need cash to cover their stock market losses. They often sell their gold to meet ‘margin calls’, which increases the supply of gold in the market and causes prices to fall.

Impact of Crude Oil: Crude oil prices rise due to tensions near the Strait of Hormuz $100 Have gone beyond. There is a danger of inflation increasing due to oil becoming expensive. In such a situation, the possibility of cutting interest rates by the US Federal Reserve has reduced, which is a negative sign for gold.

Profit Booking: By 2025 and early 2026, gold had already reached its record high (about ₹1.60 lakh per 10 grams). Many investors are booking their profits at this high level, due to which correction is being seen in the prices.

Rising Bond Yields: People are also turning to Government Bonds as a safe investment because they provide fixed interest, whereas no regular interest is available on gold.

What does the future forecast say?

Market experts believe that this decline Short-term Might be possible. If the war drags on and there are signs of a global economic recession, gold prices could fall by the end of the year. 15% to 20% The pace may come again.