look news india
This year, gold prices have done wonders. The price has crossed $4,000 per ounce (about Rs 1.22 lakh per 10 grams in India) for the first time. But now the same signs are being seen which were seen before the big shocks of 2011 and 2020. Experts are warning that the current boom in gold can turn into a 10 percent fall at any time.
Natixis Bank’s gold analyst Bernard Dahda says, the first reason
That is, after the current rally, gold may face a short-term shock due to margin erosion and selling by leveraged investors. He said that we have already seen that in times like 2011, 2020 and 2022, gold had fallen by 5 to 10 percent in a few days. When profits rise, many investors book profits, which increases selling pressure in the futures market. The situation from which gold had fled early seems to be receding in the present times.
Another reason is that
There is currently a government shutdown going on in America. Due to which there is an atmosphere of panic in the market. If Congress passes a new funding bill in the coming time, then instead of relief, gold may see a decline. Because even when the previous shutdowns ended in 2013 and 2019, gold fell by 2-3%. Currently, investors are buying gold as a ‘safe investment’ in a volatile environment. But as the uncertainty subsides, funds may again return to equities and bonds.
The third reason is
That gold prices are so high at the moment that demand for both jewelery and the central bank is beginning to weaken. According to Natixis, 70 percent of total global gold demand comes from these two regions. When prices start rising too much, consumers shy away from buying and central banks slow down purchases, so if this trend continues for a few more weeks, prices may begin a natural decline.
But in the long term, the story is still strong
Experts believe that gold fundamentals will remain positive till 2026. Because interest rates will gradually fall. The dollar will remain weak and global trade tensions will increase due to Trump’s reciprocating tariff policy, which will support gold again. However, in the short term, investors should remain cautious and gradual investment (SIP or installment investment) may be a better strategy.
today’s gold prices
According to India Bullion Jewelers Association (IBJA), the price of 10 grams of 24 carat gold has increased by Rs 472 to Rs 122570 today. Which had closed at 122098 in the last session. Whereas today a rise of Rs 1400 has been recorded in silver and the price has reached Rs 154100 per kg. Which closed at 152700 yesterday.
