After the budget There has been a big drop in the price of gold and silver. From July 23 to July 27, gold has become cheaper by about Rs 5000 per 10 grams and silver by about Rs 8000 per kilogram. The reason for this is the announcement made by the Finance Minister in the budget to reduce the custom duty on gold from 15% to 6 percent. After the big drop in the price of gold, the purchase of gold has increased. People feel that this is a good time to buy gold and silver, but commodity experts do not agree with this opinion.
Experts say that the price of gold and silver has increased a lot in the last one year. Gold has become costlier by about 25% in the last one year. The price of silver has increased by about 30%. A one-sided rise has been registered in gold and silver. Now the global and domestic conditions are changing. In such a situation, the chances of increase in the price of gold are very less in the short term. Yes, there is every possibility of a decline.
Gold price may once again reach Rs 65 thousand
Anuj Gupta, commodity-currency head at HDFC Securities, told India TV He told that there is still scope for further decline in the price of gold. If we look at all the contracts available on MCX, the price of gold can come down further. He said that there are many other reasons for the fall in the price of gold, including strong GDP figures of America, relief from rising inflation, reduction in geopolitical tensions and slowing down the purchase of gold by central banks around the world. All these factors are negative for the price of gold and silver. I believe that its effect will be seen on the price of gold in the coming days. The price of 99.9 percent pure gold can once again reach 65 to 68 thousand per 10 grams. In such a situation, if you are an investor, it would be right to wait a bit. If you want to buy jewellery, then do some shopping now and wait.
Why there is a possibility of a fall in the price of gold
- market sentiment: Strong US GDP data, reduction in geopolitical tensions and boom in stock markets across the world have changed investor sentiment. Demand for gold is highest in times of uncertainty. When uncertainty in the market starts to reduce, demand for gold reduces. Now that uncertainty in the market is reducing, investors will invest in other investment mediums other than gold. All these factors will work to bring down the price of gold.
- Policies of the Central Bank: Central bank policies and purchases by central banks help to raise gold prices. Now central banks around the world are reducing their purchases of gold. This will reduce the demand for gold which can bring down the price.
- Currency Strength: A strengthening of the value of the US dollar against other currencies can cause gold prices to fall. When the dollar strengthens, gold becomes more expensive for buyers using other currencies, which can reduce demand.
- Global Events: Geopolitical tensions, natural disasters, epidemics etc. affect the fall in gold prices. When the environment starts improving, the price of gold becomes stable. Sometimes a decline is also seen.
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