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.

Silver Prices In India: Often the demand for gold increases significantly during any festive season in the country, because it has economic as well as social and religious importance. At the same time, silver has given excellent returns to investors this year. Due to its increased demand at the global level, the price of silver has seen an increase of about 75 percent.

Why is the price of silver increasing?

At present, silver has become the first choice of people, industries and central banks. Due to continuously increasing purchasing, its price in India has reached around Rs 1,50,000 per kg. This is at its highest level ever. Silver has given better returns compared to gold and other investment instruments, due to increased demand in industries, reduction in supply and investors considering it a safe instrument.

According to market experts, this rise in the price of silver may continue in future also. According to Dr. Renisha Chenani, Head of Research, Augmont, silver has currently reached around Rs 1,50,000 per kg. If this level remains intact, its price may reach near Rs 1,65,000. However, on Thursday the price of silver had fallen slightly to Rs 1,44,000 per kg.

What are the experts saying?

Dr. Chenani says that the attraction of investors towards safe investment has been the main reason for the increase in the price of silver by 75 percent this year. Apart from this, shortage in supply and increase in industrial demand have also given rise to its price.

Dr. Chenani says that the period of geopolitical uncertainties and global monetary policy have also worked to further increase the price of silver. Apart from this, due to political instability in America, Japan and France, its price is rising like a rocket. Whereas, a decline in its price is being seen in the London market.

Also read: Foxconn will make a huge investment of Rs 15,000 crore in this state, 14000 engineering jobs will be created.