National Desk: A shocking news has come out for gold investors. Experts say that gold prices may fall by 38% in the coming months. This fall can bring a big change in the gold market and surprise investors.
According to experts, the reason for this fall in gold prices may be changes in global economic conditions, central bank policies, and the strength of the US dollar. Apart from this, if the financial markets improve and other investment options start performing better, then the price of gold may fall.
The price of 24 carat gold in India on March 31 was Rs 89,510 per 10 grams. If it falls by 38%, it may fall to Rs 55,496 per 10 grams. John Mills, an analyst at Morningstar, an American financial services company, says that the price of gold may fall to $1,820 per ounce, which will be about 38% less than the current level.
Rising gold supply leading to a fall in gold prices : When gold prices are high, mining companies tend to extract more gold. The average profit of gold mining companies in the second quarter of 2024 was $950 per ounce, the highest since 2012. Also, old gold is also being reused on a large scale, increasing the supply of gold in the market. Excess supply may put pressure on prices.
Declining gold demand: While central banks and investors have been making large purchases of gold over the past few years, it is unlikely that their interest will last for long. Central banks bought 1,045 tonnes of gold in 2024, but most have indicated that they may reduce their gold holdings next year. This means that the demand for gold may be lower in the future, which could impact prices. The gold industry has seen a 32% increase in deals in 2024, indicating that gold prices may have peaked.
John Mills says that gold prices may fall, but not all experts agree on this. Some leading analysts believe that gold prices may rise further. Bank of America estimates that the price of gold may reach $3,500 per ounce in the next two years, while Goldman Sachs believes that the price of gold may reach $3,300 per ounce by 2025.
