Gold prices have fallen sharply in the past week, giving relief to investors ahead of the wedding season.
In just eight days, 24-carat gold dropped by ₹8,455 per 10 grams, from ₹1,30,874 on October 17 to ₹1,22,419 on October 24.
Silver has also seen a major decline.
From ₹1,78,100 per kilogram on October 14, its price fell to ₹1,47,033 per kilogram on October 24 — a drop of ₹28,000 in just 11 days.
Why Are Gold Prices Falling?
Experts say several factors are driving this decline:
US Dollar Rise: A stronger US dollar has reduced demand for gold.
Profit Booking: Some investors are selling gold to secure profits after recent highs.
Seasonal Demand: Physical gold demand declined after the Diwali season.
Global Economic Factors: The market is awaiting US inflation data, which could influence the Federal Reserve’s next decisions.
These factors combined have pushed both gold and silver prices lower.
Experts Predict Gold Will Rise in the Long Term
Despite the current drop, many banks and market analysts are optimistic about gold’s long-term growth:
Morgan Stanley expects gold prices to reach $4,400 per ounce due to central bank demand.
JP Morgan predicts gold could surpass ₹170,000 ($5,055 per ounce) by the end of 2026.
Experts also suggest that gold prices may exceed ₹240,000 per 10 grams ($8,000 per ounce) by the end of 2028.
Takeaway
Short-term drops in gold and silver are natural, influenced by market trends and investor behavior.
However, experts believe that long-term prospects remain strong, making gold a valuable asset over time.
(This is not investment advice. Gold prices fluctuate due to multiple factors.
Please consult experts before making investment decisions.)
