If you’ve been waiting to buy gold, the recent market trend might bring a smile to your face. After hitting peak levels, gold and silver prices have witnessed a significant correction in India, offering a window of opportunity, especially with the wedding season around the corner.
Data indicates a sharp decline over a short period. The price of 24-carat gold has fallen from approximately ₹1,30,874 per 10 grams on October 17th to around ₹1,22,419 per 10 grams by October 24th—a drop of nearly ₹8,455. Silver has seen an even steeper fall, tumbling from about ₹1,78,100 per kg on October 14th to roughly ₹1,47,033 per kg on October 24th, making it cheaper by a substantial ₹28,000 per kg.
So, what’s driving this sudden drop? Market analysts point to a combination of factors. A strengthening US Dollar has made dollar-priced gold more expensive for holders of other currencies, dampening global demand. Additionally, investors are capitalizing on recent highs by booking profits. The domestic demand for physical gold has also softened slightly after the conclusion of the Diwali season.
Despite the current dip, the long-term outlook from several major financial institutions remains optimistic. For instance, Morgan Stanley has cited strong central bank buying as a key reason gold could potentially reach up to $4,400 per ounce in the future. JP Morgan, in its analysis, has projected that gold could cross ₹1,70,000 per 10 grams (approximately $5,055 per ounce) by the end of 2026, with some expert reports even suggesting a potential rise to ₹2,40,000 per 10 grams (around $8,000 per ounce) by 2028’s end.
Fact Check & Disclaimer:
Fact Check: The price movements and analyst projections mentioned are based on reported market data and public analyst reports from institutions like Morgan Stanley and JP Morgan. However, commodity prices are highly volatile and can change rapidly.
Disclaimer: This article is for informational purposes only and should not be considered as financial or investment advice. The views and opinions expressed by third-party analysts are their own. Potential investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.