By Admin 
Gold price down: There has been a rise in the price of gold for the last few weeks. Despite this, on the occasion of Dhanteras, people considered it auspicious and made huge purchases of gold coins, bars and jewellery. Now people have to shell out more money for gold than before, the budget is getting disturbed and other expenses are being cut. However, experts believe that the price of gold may fall after Diwali.
the price of gold will go down
Pranav Mer, Vice President of Commodity and Currency Research, JM Financial Services Limited, said, some decline may be seen in the price of gold. By this week its physical demand will reduce and valuation of existing fundamentals has also already been done. However, China’s data, inflation in Britain, PMI data of different sectors, expectations of Federal Reserve’s interest rate cut and US consumer confidence data are some of the global signals on which traders will keep an eye.
Price can go up to Rs 1.5 lakh per 10 grams
Sugandha Sachdeva, founder of SS WealthStreet, says that gold prices are going into the overbought zone, so it is expected to remain sluggish for some time. In such a situation, the possibility of price correction cannot be ruled out. Investors should be prepared for a possible decline. However, after a short pause, we see the prices moving towards Rs 1,45,000 to Rs 1,50,000 per 10 grams or around $4,770 per ounce, so it makes sense to buy on dips.
Some special reasons for falling prices
- The dollar index has fallen by more than 9 percent so far this year, falling below 100 points since the end of May this year. Since gold prices are determined by dollars, a weak US dollar can make gold cheaper. Experts believe that a continuous fall in the US dollar above 100 can put pressure on gold.
- Gold prices increased this year due to geopolitical tensions. Experts believe that if things are resolved between Russia and Ukraine, there could be a huge fall in gold prices. After the ceasefire agreement between Israel and Hamas, now hopes of ceasefire between Russia and Ukraine are also being expressed.
- Sachdeva says that if the shutdown in America ends or trade tension with China reduces, then the demand for gold as a safe investment may fall. Anyway, its expectations have intensified with the meeting to be held between President Trump and Xi Jinping in the next two weeks.
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