Buy gold and silver or wait now? Know whether there will be further decline in gold rate or there will be a big jump

Gold Price Prediction: Since Dhanteras, there has been a continuous decline in gold prices. Whereas before that gold rates remained at record high. In such a situation, the question in the minds of investors and customers is whether they should wait to buy gold or will buying at the current rate be beneficial?

Manish Sharma, AVP of Commerce and Currencies at Anand Rathi and Stock Brokers, says that at present the trend of decline in the prices of both gold and silver may continue. The momentum that was seen during the festive season is now fading.

What could be the investment strategy?

After registering a continuous rise for about nine weeks, the main reason for the fall in prices is the trade progress between India and China and increase in supply in the global market. According to Sharma, due to these reasons investors have started profit booking in the silver market. From August 22 to Diwali, a tremendous rise was seen in both gold and silver. However, after the trade tension between America and China subsided, investors have currently distanced themselves from buying gold as a safe-haven asset.

The two-day policy meeting of the US Federal Reserve (US Fed) will end on Wednesday, after which a 25 basis point cut in interest rates may be announced. However, market experts believe that this move will not have a major impact on gold prices, but the statements and comments of Fed Chairman Jerome Powell may affect the strategy of investors.

Expert advice

Earlier, US Treasury Secretary Scott Besant had said that a trade deal could be discussed during the possible meeting of US President Donald Trump and Chinese President Xi Jinping this week. Due to this, the inclination of investors is currently inclined towards the stock market.

Market experts believe that the short-term correction in gold may continue. However, it may be beneficial for long-term investors to start buying gradually at the current level, because by the end of the year, the fall in the dollar index and geopolitical instability may once again support gold.