India Morning News
Mumbai: People are again choosing gold as a safe investment. In the last few months, gold prices have gone up by 42%, while the stock market has increased only 4%. Gold reached its highest price ever on the Multi Commodity Exchange (MCX).
In October futures, gold became ₹1,09,000 for 10 grams. The rise happened because of three reasons: more demand in India, a weaker US dollar, and hope that the US central bank will cut interest rates soon. Since the dollar fell by 0.10%, gold became cheaper in other currencies, so people across the world started buying more.
Main reason for this growth is the chance of lower interest rates in the US. Recent reports show that new jobs in August were very few, and the unemployment rate went up to 4.3%, the highest in four years.
Jeffrey Roach, chief economist at LPL Financial, said that this shows the US job market is slowing down, and the economy is becoming more stable.
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