Gold price will drop to 55000! Experts analyst predicts
Gold price will drop to 55000– For the past few days, the price of gold has been increasing rapidly. It seems that in just a few days, it will cross 1 lakh. Its signal was clearly visible in the country’s futures market and the Delhi gold market. The price of gold in the country’s futures market has crossed Rs 91,400. On the other hand, the price of gold in the country’s capital, Delhi, has crossed the Rs 94,000 mark. The price of gold is at a record level in both places.
On the other hand, a prediction has also come to light that has created a stir in the gold market. According to one prediction, the price of gold may fall to Rs 55,000 in the coming days, far from Rs 1 lakh. This means that the price of gold is expected to fall by 40 percent from its peak. Let us know who made this prediction and how accurate it is.
Gold can be found for Rs 55,000!
This year, the price of gold has increased by about 20 percent. Be it the spot market or the futures market. Gold has left no stone unturned in making money for investors. However, the pressure on consumers is now clearly visible. However, an American analyst has predicted a sharp decline. Analysts at American Morningstar have predicted a 38 percent decline in the next few years.
The price of 24-carat gold in the Indian market is around Rs 90,000 per 10 grams and over $3,100 in the global market. A possible decline of about 40 percent could bring it down to around Rs 55,000 per 10 grams in India. John Mills, a strategist at US-based Morningstar, expects gold prices to fall to $1,820 per ounce from the current $3,080 per ounce, which is a significant drop.
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Gold Price Drop reasons-
economic uncertainty, inflation concerns, and geopolitical tensions, which have led to a huge increase in gold prices. Gold prices have risen rapidly, especially as investors turned to safe haven assets amid the trade dispute that began during the term of US President Donald Trump. However, several factors could now push the price down…
Increased supply- Gold production has increased, with mining profits reaching $950 per ounce in the second quarter of 2024. Global reserves have increased by 9 percent to 216,265 tonnes, with Australia increasing production and recycled gold supplies also increasing.
Demand is slowing– Central banks, which bought 1,045 tonnes of gold last year, could see demand slow down. A survey by the World Gold Council found that 71 percent of central banks plan to reduce or maintain their gold holdings.
Market saturation-Gold mergers and acquisitions increased by 32 percent in 2024, indicating that the market is at its peak. Additionally, the rise in gold ETFs reflects the pattern seen before the last price correction.
BoFA and Goldman Sachs Expect Prices to Rise
Despite Mills’ forecast, some of the world’s leading financial institutions remain optimistic. Bank of America estimates that gold could reach $3,500 an ounce within the next two years, while Goldman Sachs expects prices to reach $3,300 an ounce by the end of the year. The coming months will decide whether gold maintains its momentum or faces the predicted decline.
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