Gold price prediction: Due to the continuous rise in the price of gold for the last few days, it is being estimated that the price of gold will soon touch the level of Rs 1 lakh. Its signs are clearly visible in the country’s futures market and Delhi bullion market. Gold prices crossed Rs 91,400 in the country’s futures market. On the other hand, gold prices in the country’s capital Delhi have crossed the level of 94 thousand. Gold prices are at record levels at both places.
Uproar in the gold market
On the other hand, a prediction has come out which has created a ruckus in the gold market. According to a prediction, in the coming days, the price of gold may fall to Rs 55,000, let alone Rs 1 lakh. This means that gold prices are expected to fall by 40 percent from their peak. Let us tell you who has made this prediction and what kind of arguments have been given to make it meaningful.
Gold will come at 55 thousand rupees!
In the current year, gold prices have seen a rise of about 20 percent. Be it the spot market or the futures market. Gold has left no stone unturned in making investors earn money. At the same time, the pressure on the consumer is clearly visible. However, an American analyst has predicted a sharp decline. Analysts at US-based Morningstar have predicted a decline of 38 percent in the next few years.
The price of 24 carat gold is around Rs 90,000 per 10 grams in the Indian markets and more than $3,100 in the global market. A potential drop of about 40 per cent could bring it down to around Rs 55,000 per 10 grams in India. US-based Morningstar strategist John Mills expects gold prices to fall from the current $3,080 an ounce to $1,820 an ounce, a big drop.
Major reasons for the possible decline
Gold prices have seen a tremendous rise due to economic uncertainty, inflation concerns and geopolitical tensions. Investors have turned to safe haven assets, especially gold prices have seen a big rise amid the trade disputes that began during the tenure of US President Donald Trump. However, now many factors can take the prices downwards.
Increased supply: Gold production has increased, mining profits have reached $950 per ounce in the second quarter of 2024. Global reserves have increased by 9 percent to 2,16,265 tonnes, Australia has increased production and the supply of recycled gold has also increased.
Decreasing demand: Central banks, which bought 1,045 tonnes of gold last year, may reduce demand. A World Gold Council survey found that 71 per cent of central banks plan to reduce or maintain their gold holdings.
Market saturation: Mergers and acquisitions in the gold sector increased by 32 per cent in 2024, indicating that the market is at its peak. Additionally, the surge in gold ETFs mirrors the pattern seen before the last price correction.
BoFA, Goldman Sachs expect prices to rise
Despite Mills’ forecast, some of the world’s leading financial institutions remain optimistic. Bank of America estimates that gold could reach $3,500 an ounce in the next two years, while Goldman Sachs expects the price to end the year at $3,300 an ounce. The coming months will determine whether gold maintains its momentum or faces the predicted decline.
Gold reached a new level
If we talk about gold prices, then on Thursday gold prices were seen trading at a new level in the country’s futures market. If we look at the data, the price of gold is trading at Rs 90,470 on MCX at 3:35 pm with a fall of Rs 258. Whereas during the trading session, the price of gold had also reached a new level of Rs 91,423. This means that the price of gold has come down by about Rs 1,000 from its peak. By the way, this morning gold opened at Rs 91,230. A day earlier, the price of gold closed at Rs 90,728.