Gold has fallen to its lowest point in 5 days, dipping below Rs 94,000 per 10 grams on MCX and below $3280 on COMEX.
Silver has also dropped below Rs 96,000 per kilogram on MCX and below $33 on COMEX.
Experts suggest that if a solid business deal is reached between the US and China, the demand for gold as a safe haven may reduce.
The ongoing US-China trade talks, a decline in safe-haven buying, the India-Pakistan ceasefire, and expectations of an end to the Russia-Ukraine war are all putting pressure on gold prices.
Additionally, the strengthening of the dollar is also impacting the yellow metal.
Expert Opinions on Gold
Harshal Barot, Senior Consultant at Metals Focus, believes that the positive factors for gold are currently missing.
Talks about the Russia-Ukraine ceasefire, the US-Iran situation, and the India-Pakistan conflict are negative for gold in the short term.
He predicts that gold could drop to $3000 and may fall to Rs 86,000-85,000 per 10 grams on MCX in the near future.
However, Barot remains bullish on gold in the long term. He expects demand to increase as prices stabilize and suggests that gold could reach $4000 in 1 to 1.5 years.
Kunal Shah, VP of Nirmal Bang Securities, also sees short-term pressure on gold, with prices potentially falling further.
The uncertainty around the US-China trade war initially pushed gold prices up, but now he forecasts that gold may dip to $3000. In India, he predicts gold could reach Rs 91,000-90,000 per 10 grams.
