Gold is an important part of Indian culture and investment. Gold shopping is considered auspicious on every festival, marriage or special occasion. In the last few months, there was a tremendous jump in gold rates, which increased the concern of common buyers.
But now there are reports that there is a huge decline in the gold rate. In such a situation, the question arises – is this the right time to buy gold? Can the price of gold really fall further or is it just a temporary change?
In today’s time, when there is instability in the market, inflation is increasing and international events are constantly changing, gold prices fluctuations have become common. According to the recent reports and analysis, gold rates are expected to fall.
Some experts also believe that gold prices may fall by Rs 56,000 per 10 grams in the coming time. Let’s know, know the truth, reasons and what is the right strategy for investors.
Gold rate fall: What is the reality?
Till now gold prices were at a record level-24 carat gold had reached Rs 98,000-1,00,000 per 10 grams. 22 carat gold was also trading around Rs 90,000. But in recent times, the market has suffered slight softening and there has been some decline in rates. According to many reports and market experts, gold prices may fall further in the coming months, and it can also go up to Rs 56,000 per 10 grams.
Gold rate of gold rate (Gold Rate Today)
| Gold type | Today’s rate (10 grams per) |
| 24 carat gold | ₹ 98,200 – ₹ 98,350 |
| 22 carat gold | ₹ 90,010 – ₹ 90,150 |
| 18 carat gold | ₹ 73,650 – ₹ 73,730 |
| 100 grams (24 carat) | ₹ 9,82,000 |
| 100 grams (22 carats) | ₹ 9,00,100 |
| Rate in major cities | Delhi: ₹ 94,940, Mumbai: ₹ 95,100, Chennai: ₹ 95,380, Bengaluru: ₹ 95,180, Hyderabad: ₹ 95,250, Kolkata: ₹ 94,980 |
| Fall estimate | Up to 38% (up to Rs 56,000/10 grams) |
The main reasons for fall in gold rate
- America-China Trade War and Tariff: The US has given instability to the global markets by the US imposing tariffs on many countries and in response to it. This has put pressure on gold prices.
- Strength of the dollar: Gold demand decreases due to the strengthening of the dollar, causing rates to fall.
- Increase in gold supply: Gold mining profits increased in the second quarter of 2024, which increased the supply.
- Demand reduction: Gold reserve purchases by central banks are likely to slow down.
- Extreme level of gold price: When the price of gold goes very high, investors start selling for profit booking.
- Reduction in global uncertainty: Russia-Ukraine war in the war, reduced the possibility of trade war, etc. reduces the safe haven demand for gold.
Will Gold really go up to Rs 56,000?
Some American and Indian analysts believe that if the current trend continues, gold prices may fall by 38–40% in the next few months. In such a situation, 24 carat gold can come up to Rs 56,000-60,000 per 10 grams. However, how much and how deep this decline will be, it will completely depend on the market conditions, global events and the spirit of investors.
Today’s gold rate in major cities of India
| City | 22 carat (₹/10 grams) | 24 carat (₹/10 grams) |
| Delhi | ₹ 94,940 | ₹ 95,032 |
| Mumbai | ₹ 95,100 | ₹ 95,032 |
| Chennai | ₹ 95,380 | ₹ 95,032 |
| Bengaluru | ₹ 95,180 | ₹ 95,032 |
| Hyderabad | ₹ 95,250 | ₹ 95,032 |
| Kolkata | ₹ 94,980 | ₹ 95,032 |
Gold Investments Options
There are many options to invest in gold, from which you can choose according to your need and convenience:
- Physical Gold: Jewelry, coins, biscuits etc.
- Gold ETF: Gold funds traded in stock market.
- Gold Mutual Fund: Investment in Gold through SIP.
- Digital Gold: Gold purchased from online platform.
- Sovereign Gold Bond: Bond released by the government, which also gets interest.
- Gold Savings Scheme: Monthly Investment Plans of Jewelers or Banks.
Gold rate fall: What is the right strategy for investors?
- Long -term investor: If you want to buy gold for long term, shopping in the fall may be a good chance.
- Short Term Traders: In view of market fluctuations, there is a high risk in short term trading, so be cautious.
- Diversification required: Do not limit your investment to gold just. Make balance in shares, debates and gold.
- Caution on current prices: Gold prices are high right now, so do not invest heavy in a hurry. Keep the market direction in mind.
- Buy Hallmark Gold only: Always buy gold with hallmark for gold purity and safety.
Benefits and disadvantages of falling gold rate
Benefits:
- Good opportunity for investment, especially for long periods.
- Shopping for jewelry can be cheaper.
- Taking a gold loan can be cheaper.
Loss:
- Damage to investors already invested.
- Fear of further decline in short term.
- If the decline is temporary then hasty purchases can cause damage.
Gold rate fall: Estimates of days to come
- According to market experts, if the global uncertainty is low and the dollar remains strong, the price of gold may fall further.
- If inflation increases or a new global crisis comes, gold can be expensive again.
- Investors should monitor market direction, international events and economic policies.
Gold rate fall: Major points at a glance
| point | Description |
| Current rate | 90,000-98,000 rupees/10 g (24k) |
| Fall estimate | Up to 38-40% (up to Rs 56,000/10 g) |
| Main reason | Dollar strong, supply increased, demand decreased |
| Investment methods | Physical, ETF, Mutual Fund, Digital, Bond |
| Advice for shopping | Good opportunity for long period, vigilance is necessary |
| Hallmarking | Buy hallmark gold |
| Market volatility | Impressed by global events |
Economic reasons behind falling gold rate
- Global markets fluctuations: US-China Trade War, Russia-Ukraine crisis, dollar move.
- Change in demand and supply: supply increased, demand decreased.
- Central bank policy: slowness in Gold Reserve purchases.
- Profit booking: When the price goes very high, investors sell.
- Impact of inflation: Gold demand increases due to inflation, but currently inflation is stable.
Should we buy gold now?
- If you consider gold as a long term investment, purchases in the fall may be beneficial.
- Short term is likely to fall further, so invest slowly.
- Always buy hallmark gold and take a bill.
- Keep an eye on market direction, international events and economic policies.
Benefits of investment in gold
- Security against inflation.
- Portfolio diversification.
- Liquidity – Can sell anytime.
- Gold loan facility on need.
Loss of investment in gold
- Price volatility in short term.
- Storage and safety expenses in physical gold.
- Return may be reduced due to making charge and tax.
conclusion
Reports of gold rate fall may be a golden opportunity for investors, especially for those who want to invest for a long time. However, there is still uncertainty due to market fluctuations and international events. In such a situation, do not take any major decision in a hurry. Invest only keeping in mind the direction of the market, the opinion of experts and their needs. Always take care of hallmarking, bill and purity in gold shopping. Along with investment in gold, portfolio diversification is also necessary, so that the risk is low and returns are better.
Disclaimer
The information given in this article is based on various media reports, market analysis and opinion of experts. Gold rates are expected to fall, but the market direction depends entirely on global events, economic policies and the spirit of investors. Before investment, consult your financial advisor. Gold prices can be up and down in future, so invest in a thoughtful and vigilance.
