Gold Price / Trump said chances of recession have increased in US, why did gold gain momentum?

Gold Price: The world's largest economy, America, is once again facing the fear of recession. This time US President Donald Trump himself has confirmed this threat. Trump has openly criticized the US Central Bank Federal Reserve and its chairman Jerome Powell, saying that if interest rates are not cut soon, then America may face an economic recession. The Fed has already indicated that it will not rush to cut interest rates in the current tariff environment. After this statement, there has been a stir in the global financial markets and gold prices have taken wings.

Gold jumped from India to America

After Trump's statement about the possibility of recession, there has been a tremendous increase in the demand for gold all over the world. While gold prices are set to cross Rs 99,000 on the Multi Commodity Exchange (MCX) in India, gold prices in the Comex market in New York, America have touched a record $ 3,500 per ounce. Market analysts believe that in the current circumstances, investors are increasingly turning to gold as a 'safe haven' i.e. a safe investment option.

Tremendous earnings of investors in April

In the month of April, gold prices have seen a rise of more than Rs 8,000. While gold was Rs 90,717 per ten grams on the last trading day of last month, now it has reached Rs 99,178 per ten grams. That is, in just a few weeks, gold has given investors a return of more than 9 percent. The main reason behind this rise is the increasing trade war between the US and China, uncertainty in interest rates and instability in global markets.

Is gold about to touch the figure of one lakh?

According to the data of the futures market, now there is only a few hundred rupees more increase in the price of gold so that it can cross the historic level of one lakh rupees per ten grams. Gold prices have also reached close to this level in Delhi's bullion market. Experts believe that as long as there are differences between the US Fed and the government over interest rates, this boom will not stop.

New record in US market too

Talking about the US market, gold is trading at $3,496.60 an ounce in Comex, which is the highest level so far. At the same time, gold spot prices have also crossed $3,480. In the month of April itself, gold spot has registered a gain of about 12% i.e. $371.79 an ounce.

What do experts say?

Financial experts believe that when global economic uncertainty increases, investing in gold is considered a safe option. This is the reason why investors from all over the world are rushing towards gold at this time. Gold has seen a rise of about 30% so far in the current year.

What next?

President Trump, in his statement on Monday, put pressure on the Fed, saying that interest rates need to be cut immediately, otherwise the US economy may get stuck in recession. On the other hand, Federal Reserve officials are going to make several important statements at the end of this week, which may make it clear in which direction America's monetary policy will go.

On the other hand, the bitterness of the trade war between China and America is also increasing continuously. China has accused America of misuse of tariffs and has warned other countries not to enter into an economic agreement with America.