Gold Rates: Gold prices have reached record highs, with the price of 10 grams of 24-carat gold in Delhi hovering around Rs 93,000.
However, experts believe that gold prices could drop by up to Rs 12,200 in the near future. They have outlined several reasons for this potential drop.
At the same time, experts also predict that gold prices could soar to Rs 1,37,000 in the coming year.
Despite global economic uncertainty driving up gold demand, a correction in its price is expected.
Will Gold Prices Really Fall to Rs 12,200?
Commodity expert Kishore Narne suggests that while gold prices might experience some volatility around $3,200 per ounce, prices are expected to increase in the long run.
If gold prices drop by $300-$400 per ounce (a 5-8% decrease), this could present a great buying opportunity for investors.
In terms of Indian rupees, this drop could lead to a decrease in the price of 10 grams of gold by Rs 9,200 to Rs 12,200. This drop could be the perfect time for new investors to buy gold.
Expert Predictions on Gold Prices
Kishore Narne, Commodities Director at Motilal Oswal Financial Services, states that there’s no set limit to gold prices.
Despite recent rapid increases, he believes the price could rise to $4,000 to $4,500 per ounce. Converting this into Indian rupees, gold prices could reach between Rs 3,42,240 to Rs 3,85,020 per ounce.
Since there are 28.34 grams in an ounce, the price of 10 grams of 24-carat gold in India could soon range from Rs 1,22,229 to Rs 1,37,507.
Why Will Gold Prices Rise?
Several factors are contributing to the rise in gold prices:
US Policies: US President Donald Trump’s new tariff policy, expected to be announced on April 2, is a key factor driving gold prices up.
Inflation and Economic Recession Fears: With growing concerns over inflation and a potential global recession, investors are turning to gold as a safe haven to protect their wealth.
Geopolitical Tensions: Rising tensions between countries have made gold an even more attractive investment, as it is seen as a secure asset during uncertain times.
Central Bank Purchases: Many central banks around the world are increasing their gold reserves, further boosting demand and, consequently, prices.
What Should Be the Share of Gold in Your Investment Portfolio?
Kishore Narne recommends that investors allocate 5% to 20% of their portfolio to gold or gold-related investments.
Long-term investors need not panic, as gold remains one of the strongest assets for preserving value.
Opportunities in Silver Investments
As gold prices rise, silver is also seeing significant price increases. Experts predict that silver prices could hit a resistance point of Rs 1,02,000 to Rs 1,05,000 per kg.
In the long run, silver prices could reach Rs 1,25,000 per kg, making it a viable investment option alongside gold.
When Should You Invest in Gold?
While gold and silver prices continue to rise, experts suggest that investors should be strategic.
Instead of buying during price surges, look for declines in gold prices as an opportunity to invest.
With a long-term perspective, these market corrections can provide a chance to buy gold at lower prices and benefit as prices rise in the future.
