New Delhi: In view of the possibility of a reduction in interest rates by the US Federal Bank, the trend of strengthening in the price of gold has started. A reduction of 25-50 basis points in the federal rate is possible in September. Experts say that after this the price of gold will increase further.

In view of the geopolitical uncertainty, countries like China, India, Brazil, Turkey have been buying gold in large quantities for the last one year. This will also support the rise in gold prices. Gold is consumed the most in China and India. In June this year, the Indian government had a gold reserve of 841 tonnes. According to JP Morgan, in the year 2024, China can buy 36 percent more gold than last year.

Gold's shine will increase due to dollar weakness

Chief Economist of PHD Chambers, SP Sharma said that the price of gold is on the rise, but there is a possibility of further rise. It is waiting for a cut in the Federal Rate. If the rate is cut, the dollar will weaken and if the loan becomes cheaper in America, the cash flow in the market will increase, which will increase the purchase of gold. He said that as soon as the dollar weakens, the price of gold starts rising because then gold becomes the choice of investors.

At present, crude oil is softening and in view of the war-like situation from Europe to West Asia, there is no possibility of crude oil rising. This will also strengthen the price of gold.

What is the expert's opinion on the price of gold

Pranav Mer, Vice President of Commodity and Currency Research, JM Financial Services, said that the price of gold will continue to strengthen and the increase will depend on how much the federal rate is cut. However, on Monday, the price of 24 carat gold in Delhi's bullion market fell by Rs 300 to Rs 72016 per 10 grams. But in the last one week, the price of gold has increased by Rs 2000 per 10 grams. Retail customers have got relief due to the reduction in the duty on gold import in this year's budget.