Will Gold Prices Drop More by the End of December?

Gold Prices Drop:

Gold prices have been falling for the second consecutive week and experts believe the decline may continue till December. The recent drop is linked to several international factors such as a stronger US dollar, easing geopolitical tensions, and positive signals from the US Federal Reserve regarding possible interest rate cuts.

Gold Prices Drop:

In October, gold prices reached a record high of ₹1,25,000 per 10 grams (24 carats), but they have now dropped to around ₹1,23,000. According to market analysts, the reduction in global tensions especially between Russia and Ukraine along with improved discussions between world leaders like Donald Trump and Xi Jinping, have led to decreased demand for gold as a safe investment.

Sandeep Raichura, Director of PL Capital, noted that the end of India’s festive season also contributed to the fall in demand. Sneha Jain, CEO of Wealth Trust Capital Services, mentioned that gold prices in the global market have dropped to nearly $4,000 per ounce from their recent peak. Experts expect that by December, prices might decline even further.

Silver prices have also witnessed a sharp fall. After fluctuating for two weeks, the price of silver has now stabilized. In October, one kilogram of silver was priced above ₹2 lakh, but it has now come down to around ₹1.66 lakh. Sneha Jain said there is still room for more reduction in the coming weeks.

NS Ramaswamy, Head of Ventura Commodities, added that the movement of metal prices depends on macroeconomic data and the comments made by US Federal Reserve Chairman Jerome Powell, which have influenced the market outlook.

In response to these changes, the Indian government has also reduced the base import prices of gold and silver. The import price of gold has been lowered by $42 per 10 grams, while silver has been reduced by $107 per kilogram. This decision aims to keep domestic prices stable in line with international trends.

Overall, the market outlook suggests that both gold and silver may see further corrections by the end of the year.

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