Over the years, gold prices have been making new records worldwide. In India too, gold prices have reached around Rs 90,000 per 10 grams. Meanwhile, an American agency has predicted that gold prices may fall from 38% to 40% in the coming time, causing its price to come up to Rs 56,000. This prediction has become a topic of discussion between investors and consumers.
There can be several reasons behind this possible fall in gold prices, including increased supply, low demand, and market saturation. Apart from these factors, global economic conditions and political stress can also affect gold prices.
However, not all experts agree with this prediction. Some large financial institutions, such as Bank of America and Goldman Sachs, are still expecting an increase in gold prices. This is an interesting controversy between the two sides, which will later decide the direction of the market.
Gold prices fall: Will gold really fall to ₹ 56,000?
Due to fall in gold prices
There are many important reasons behind the fall in gold prices:
- Increased supply: Gold production has increased, leading to an increase in global reserves. There has also been an increase in production in Australia and the supply of recycled gold.
- Lower demand: Central banks bought 1,045 tonnes of gold last year, but now they are planning to reduce their purchases. A survey found that 71% of the central banks are planning to reduce or maintain their gold reserves.
- Market saturation: Merder and acquisition in the gold sector increased by 32%, which is a sign of the market being at the peak. In addition, the bounce in the gold ETF reflects the pattern seen before the previous price correction.
Impact of fall in gold prices
The fall in gold prices may have adverse effects on investors and consumers:
- For investors: Decline in gold prices can be harmful for investors, as this can reduce the price of their investment.
- For consumers: This can be a good news for consumers, because it will make it cheaper to buy jewelery due to low gold prices.
Gold prices fall: a detailed analysis
The main point of fall in gold prices
| Subject | Description |
| Current price | The price of gold in India is around Rs 90,000 per 10 grams. |
| Potential fall | The possibility of a decline from 38% to 40%, which can lead to the price from 55,000 to 56,000 rupees. |
| Reason | Increased supply, low demand, and market saturation. |
| Global status | Gold prices in the global market are around $ 3,100 an ounce. |
| Opinion of experts | Some experts are predicting the decline, while others are expecting growth. |
| Effect | Disadvantages for investors, benefits for consumers. |
| future prospects | The direction of the market will be decided in the coming months. |
Major factors of fall in gold prices
The following are the major factors of fall in gold prices:
- Increased supply: There is an increase in supply in the global market due to increasing gold production.
- Reduced demand: The demand to reduce gold purchases by central banks is decreasing in demand.
- Market saturation: The growth of merger and acquisition in the gold sector is a sign of the market at its peak.
Gold prices fall: experts’ opinion
Various opinions of experts
Experts’ opinion is divided into this case:
- Morningstar’s opinion: Morningstar strategist John Mills believes that gold prices may fall by 38%.
- Opinion of Bank of America and Goldman Sachs: These institutions believe that gold prices may also go ahead.
Analysis of opinion of experts
Analyzing the opinion of experts suggests that there is uncertainty in the market. Some experts look at the possibility of a decline, while others are expecting growth.
conclusion
The possibility of falling gold prices is a complex issue, including several factors. Increased supply, low demand, and saturation of the market can be the major causes of this decline. However, not all experts agree with this prediction. Later, the months coming to decide the direction of the market will be important. Investors and consumers should monitor the market status and take their decisions thoughtfully.
Rejuvenation
This article provides an analysis about the possibility of falling in gold prices. This prediction is made by an American agency, but not all experts accept it. The actual market situation and future prices will depend on many factors, including global economic conditions and political conditions. It would be appropriate to consult experts before investment.
