Many people are under stress as the price of gold has risen to around Rs 90,000 per 10 kilos in india and above $3,100 in international markets. As a result, many buyers are holding out for a potential drop in the price of gold. Will the price of the precious metal drop soon? Will the yellow metal experience a significant drop in price after reaching such high levels? Will ten kilos of gold cost Rs 56,000?

Gold Price Prediction
In the coming years, gold prices may fall by 38%, according to a Morningstar analyst located in the United States.  In india, the price of gold would drop by around 40% to about Rs 55,000 per 10 kilos. Morningstar strategist john Mills anticipates a sharp decline in gold prices.  The researcher predicts that the price of gold will drop from its current $3,080 per ounce to $1,820 per ounce.  What things, then, might lower the price?

Will the gold Price Decrease?
Well, several reasons, such as geopolitical tensions, inflation worries, and economic uncertainty, contributed to the recent surge. These elements promoted gold as a secure investment, particularly during the trade battles that were started under former US President Donald Trump.
 
However, several circumstances can cause gold prices to decline despite all these motivating considerations.  Here's how:
 
Enhanced Supply: In the second quarter of 2024, mining revenues climbed to $950 per ounce.  Additionally, the world's reserves have increased by 9% to 2,16,265 tonnes, with australia expanding production and the supply of recycled gold skyrocketing.
 
Decreased Demand: It is anticipated that central banks will curtail acquisitions.  Furthermore, 71% of central banks intend to maintain or decrease their gold holdings, according to a World gold Council survey.

Market Saturation: The gold industry saw a 32% increase in mergers and acquisitions in 2024, indicating a peak market.  A rise in ETFs backed by gold also reflects trends observed before previous market declines.

Nonetheless, several significant financial organizations are bullish, with bank of America forecasting that the price of gold will hit $3,500 per ounce within the next two years.  However, Goldman Sachs projects that the price will reach $3,300 per ounce by the end of the year.  Therefore, the following months will reveal whether there is a possibility that the price of gold will reach Rs 56000 per 10 gm.


 
 
For more interesting updates wa click and follow Indiaherald WhatsApp channel

Find out more:

SIBY JEYYA

07/04/2025 09:26 AM