New Delhi: Gold prices have been rising steadily over the past few weeks. Despite this, people traditionally prioritized gold purchases on the auspicious occasion of Dhanteras. People made large purchases of gold coins, bars, and jewelry, even though they had to spend more than usual. This impacted household budgets and forced cuts in many other expenses.
Prices May Fall After Diwali
Experts believe that gold prices may fall after Diwali. According to Pranav Meer, Vice President of JM Financial Services, physical demand, i.e., actual purchases, will gradually decrease, and the prevailing economic conditions have already been factored into prices.
Gold Price Today: Planning to buy gold on Diwali? Check latest rates in your city
He explains that in the coming days, the market will be closely monitoring international indicators such as Chinese economic data, the UK inflation rate, PMI data for various sectors, the possibility of interest rate changes in the US, and consumer confidence.
Prices could go up to ₹1.5 lakh per 10 grams.
Sugandha Sachdeva, founder of SS WealthStreet, says that gold is currently in the overbought zone, meaning it has been purchased in large quantities. This could lead to a slight slowdown in the market and a temporary correction (fall) in prices.
However, she believes this decline could be a temporary opportunity. If prices fall, it would be a good buying opportunity for investors, as gold prices could reach ₹145,000 to ₹150,000 per 10 grams in the future.
Impact of the Dollar and Global Events
The weakening of the dollar is a major reason behind the decline in gold prices. The US Dollar Index has fallen more than 9% so far this year. A weakening of the dollar could make gold relatively cheaper, as its prices are fixed in dollars.
Additionally, geopolitical tensions such as the Russia-Ukraine and Israel-Hamas conflicts have also boosted gold prices this year. However, if ceasefires or peace agreements are reached in these regions, gold demand could decline.
US-China relations will also impact
If the US government shutdown ends and trade tensions with China ease, investors will likely prefer gold less as a safe-haven option. Especially if the meeting between Donald Trump and Xi Jinping in the coming days is positive, pressure on gold prices could increase.
Gold prices rising again; Is this the right time to buy or wait for a dip?
A dip is an investment opportunity
Gold prices may temporarily decline after Diwali, but in the long term, they could rise again. Therefore, investors should wisely buy during dips, as this could prove to be a good opportunity.