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Gold Silver Rate Today: Gold prices may see a huge drop in the upcoming days

Amid rising prices, gold witnessed strong Dhanteras sales. Experts suggest a price correction may follow Diwali, influenced by global economic cues. Long-term projections remain bullish, making any short-term dip a smart opportunity for investors seeking future gains.
Post Published By: Karan Sharma
Published:
Gold Silver Rate Today: Gold prices may see a huge drop in the upcoming days

New Delhi: Gold prices have been steadily rising for the past few weeks. Despite this, people traditionally made massive purchases of gold on the auspicious occasion of Dhanteras.

People purchased gold coins, bars, and jewelry, even though they had to spend more than usual. This impacted household budgets and forced cuts in other expenses.

Prices may fall after Diwali

Experts believe that gold prices may fall after Diwali. According to Pranav Meer, Vice President of Commodity and Currency Research at JM Financial Services, physical demand (actual purchases) is now declining, and the impact of the current economic situation is already reflected in prices.

Gold-Silver Rate Today: Gold rates may reach ₹1.5 lakh per 10 gms on Diwali

In the coming days, the market will be closely watching indicators such as Chinese economic data, UK inflation, expectations of interest rate cuts in the US, and global consumer confidence.

Impact of the Dollar and Global Situation

Gold prices are currently being impacted by the weakening of the US dollar. The dollar index has fallen more than 9% so far this year and has fallen below the 100 mark. Since gold prices are pegged to the dollar, a weak dollar could make gold cheaper, leading to a decline in prices.

Gold hits record highs on Dhanteras

Geopolitical Tensions and Potential Peace Agreements

Gold prices rose this year due to rising tensions between Russia and Ukraine and Israel and Hamas. However, if peace or a ceasefire occurs between these countries, gold demand could decline.

Gold prices could reach ₹1.5 lakh per 10 grams

According to Sugandha Sachdeva, founder of SS WealthStreet, gold is currently in the overbought zone, meaning a significant amount has been purchased. Consequently, prices may correct or decline for some time.

However, this decline could also be an investment opportunity, as gold prices could reach ₹145,000 to ₹150,000 per 10 grams in the future. Therefore, it would be beneficial to buy wisely during the decline.

Impact of US-China Relations

If the government shutdown in the US ends or trade tensions with China ease, investors may lessen their preference for gold as a safe-haven option.

Gold Price Today: Planning to buy gold on Diwali? Check latest rates in your city

In addition, the upcoming meeting between Donald Trump and Xi Jinping is also expected to provide relief to the market, which could put pressure on gold prices.

Gold prices may see a temporary decline after Diwali, but from a long-term perspective, they could rebound. Therefore, investors are advised to consider the downturn a good buying opportunity and plan for long-term investments.

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