For gold investors, some startling news has surfaced. According to experts, gold prices could drop by 38% in the upcoming months. Investors may be caught off guard by a significant shift in the gold market this fall.
Experts speculate that shifts in central bank policies, the strength of the US dollar, and worldwide economic conditions could cause this decline in gold prices. In addition, the price of gold may decline if the financial markets strengthen and alternative investment options begin to perform better.
On march 31, the price of 10 grams of 24 carat gold in india was Rs 89,510. It can drop to Rs 55,496 per 10 grams if it drops by 38%. gold might drop to $1,820 an ounce, or 38% below its present price, according to john Mills, an analyst at Morningstar, an American financial services firm.
A decrease in gold prices due to an increase in supply: Mining companies tend to extract more gold when prices are high. In the second quarter of 2024, gold mining companies made an average profit of $950 per ounce, which was the most since 2012. Additionally, a lot of old gold is being recycled, which expands the market's supply of gold. Oversupply could drive up prices.
Declining gold Demand:
Even though investors and central banks have been buying a lot of gold in recent years, it is unlikely that their desire will endure for very long. Despite purchasing 1,045 tonnes of gold in 2024, the majority of central banks have hinted that they would cut back on their gold holdings the following year. This implies that there might be less demand for gold in the future, which could affect prices. In 2024, the number of transactions in the gold business increased by 32%, suggesting that gold prices may have peaked.
Some analysts disagree with john Mills' assertion that gold prices may decline. According to several top analysts, gold prices could increase even further. According to Goldman Sachs, the price of gold might reach $3,300 per ounce by 2025, while bank of America predicts that it could reach $3,500 per ounce in the next two years.
Experts speculate that shifts in central bank policies, the strength of the US dollar, and worldwide economic conditions could cause this decline in gold prices. In addition, the price of gold may decline if the financial markets strengthen and alternative investment options begin to perform better.
On march 31, the price of 10 grams of 24 carat gold in india was Rs 89,510. It can drop to Rs 55,496 per 10 grams if it drops by 38%. gold might drop to $1,820 an ounce, or 38% below its present price, according to john Mills, an analyst at Morningstar, an American financial services firm.
A decrease in gold prices due to an increase in supply: Mining companies tend to extract more gold when prices are high. In the second quarter of 2024, gold mining companies made an average profit of $950 per ounce, which was the most since 2012. Additionally, a lot of old gold is being recycled, which expands the market's supply of gold. Oversupply could drive up prices.
Declining gold Demand:
Even though investors and central banks have been buying a lot of gold in recent years, it is unlikely that their desire will endure for very long. Despite purchasing 1,045 tonnes of gold in 2024, the majority of central banks have hinted that they would cut back on their gold holdings the following year. This implies that there might be less demand for gold in the future, which could affect prices. In 2024, the number of transactions in the gold business increased by 32%, suggesting that gold prices may have peaked.
Some analysts disagree with john Mills' assertion that gold prices may decline. According to several top analysts, gold prices could increase even further. According to Goldman Sachs, the price of gold might reach $3,300 per ounce by 2025, while bank of America predicts that it could reach $3,500 per ounce in the next two years.
click and follow Indiaherald WhatsApp channel