The rising prices of gold have benefited investors, but have affected those who buy jewellery. According to experts, the price of gold may fall by up to 38%. This may bring the prices down to Rs 55,496 per 10 grams. Increase in supply and decrease in purchases by banks are the possible reasons for this.
The rising price of gold has benefited investors a lot. But, it has had a huge impact on the pockets of those who buy jewellery. Now some market experts are saying that the price of gold may fall drastically. This is expected to give some relief to the customers. Some people even say that the price of gold may fall by up to 38%. If this happens, then the ways of investing all over the world may change.
Price of gold will fall
A big change is expected in the price of gold. On March 31, the price of 24 carat gold was Rs 89,510 per 10 grams. If the price falls as per the estimates, it can come down to Rs 55,496 per 10 grams. John Mills, market strategist of America's financial services company Morningstar, says that the price of gold can fall to $ 1,820 per ounce. Right now it is around $ 3,080 per ounce. This means that the price of gold can fall by about 38%.
The reason for the increase in the price of gold is the unrest in the world, economic problems and inflation. People were investing in gold considering it a safe bet. The trade war that started during the time of Donald Trump also increased the demand for gold.
Mills and some other experts believe that gold prices may fall due to some reasons
Gold supply is increasing
The supply of gold in the world is increasing rapidly. In the second quarter of 2024, the profit of gold mines reached $ 950 per ounce, which is the highest in many years. This has increased gold production. Gold reserves in the world have increased by 9% to 2,16,265 tonnes. Gold production has increased in Australia. Supply is also increasing due to reuse of old gold, which may reduce prices.
Signs of decrease in demand
Till now banks and investors were buying gold, but now it seems that this trend may change. Last year banks bought 1,045 tonnes of gold. This was the third year when more than 1,000 tonnes of gold was bought. But, a survey by the World Gold Council has revealed that 71% of banks will now buy less gold or buy the same amount, not more. It has been seen earlier also that after a big problem like Corona, the price of gold increases and then falls when the economic situation improves.
More gold in the market
When there are a lot of deals in gold trading, it shows that the market has gone up and can now come down. In 2024, deals in the gold sector increased by 32%. This shows that there is a lot of heat in the market. Investment in ETFs is also increasing, which was seen earlier also before the price fell.
They expect gold to shine
Despite Mills' predictions, big companies like Bank of America and Goldman Sachs are still excited about gold. Bank of America says that the price of gold can reach $3,500 per ounce in the next two years. Goldman Sachs estimates that it will reach $3,300 per ounce by the end of the year.
Gold price in Delhi on Wednesday
The price of gold remained unchanged at its all-time high of Rs 94,150 per 10 grams in the bullion market of the national capital on Wednesday. This happened amid concerns of retaliatory tariffs from the US. The All India Sarafa Association gave this information. On Tuesday, gold of 99.9 percent purity closed at an all-time high of Rs 94,150 per 10 grams with a gain of Rs 2,000, the fastest rise in nearly two months. Gold of 99.5 percent purity also continued to trade stable at a record high level of Rs 93,700 per 10 grams. It is another matter that the price of silver fell by Rs 1,000 from Tuesday's closing level of Rs 1,02,500 per kg. Silver closed at Rs 1,01,500 per kg.