Big news for those who buy gold! price may fall drastically!
While there is a stir in the stock market due to the reciprocal tariff, investing in gold seems to be a safe opportunity. Meanwhile, today on april 4, 2025, a huge drop was seen in the price of gold. While on one hand investors are benefiting from this, the pressure on consumers has increased. A Morningstar analyst in the US has predicted a fall in gold prices by up to 38 percent in the coming few years.
The price of gold can go down this much
Today, the price of 10 grams of 24 carat gold in the domestic markets is Rs 90,000, while in the global market its price is more than $ 3,100. With a possible fall of about 40 percent, its price can reach around Rs 55,000 per 10 grams in the indian markets in the coming time. Morningstar strategist john Mills expects gold prices to fall from the current $3,080 an ounce to $1,820 an ounce, which is a huge drop in gold prices.
This is why the price increased
There were many major reasons behind the recent rise in gold prices such as economic uncertainty, fear of inflation, geopolitical tensions, US tariffs etc. Due to this, the demand for gold increased a lot as a safe investment. However, now there are many such factors due to which the prices can come down.
Why is the price being estimated to come down?
Increasing supply of gold - gold production has increased significantly. In the second quarter of the year 2024, the profit from mining reached around $ 950 an ounce. Global gold reserves have also increased by 9 percent to 2,16,265 tonnes. australia has increased gold production significantly and the supply of recycled gold has also increased.
Decrease in demand- Demand from central banks, which bought 1,045 tonnes of gold last year, may decrease. A survey by the World gold Council has revealed that 71 central banks are planning to reduce or maintain their gold reserves.
Market saturation- Mergers and acquisitions in the gold sector have increased by 32% in the year 2024, indicating a peak in the market. Apart from this, the increase in gold-backed ETFs reflects the patterns that were last seen when prices were low.
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