Will Gold Prices Keep Falling Or Glitter Again? Experts Weigh In
After slipping below ₹1.19 lakh per 10 grams, investors are asking the golden question, is the shine fading for good, or just taking a breather?
Analysts say the short-term may stay rocky, but the long-term story still sparkles with promise. Here’s what’s shaping the outlook:
Short-Term Outlook- A Bumpy Ride Ahead
- Expect more swings: Prices could stay volatile as traders react to fresh global economic data, the next US Fed decision, and ongoing geopolitical shifts.
- Fed factor: If the Fed holds off on aggressive rate cuts, gold may stay under pressure, at least for now.
- Investor mood: With easing US-China tensions and a stronger dollar, investors are chasing riskier assets, leaving gold temporarily out of favor.
Long-Term Outlook- The Glitter Isn’t Gone
- Inflation’s silent push: Persistent inflation could drive renewed demand for gold as a hedge.
- Central banks stacking up: From the RBI to the PBOC, steady buying by central banks adds long-term support.
- Big bank bets: Analysts from JPMorgan and Goldman Sachs predict gold could shine past $5,000 per ounce by 2026, proving that every dip may just be another buying opportunity.
What Is Causing The Recent Slump In Gold Price?
- Calming US-China Trade: Schools of thought suggest investors are selling gold and buying equities in hopes of an enduring trade ceasefire.
- Profit-Taking: Traders are cashing in money at high prices after a significant rally.
- Strengthening US Dollar: A strengthened dollar makes gold more expensive for other countries, which decreases the demand for gold in the world market.
- Fed Position: Investors are also moving cautiously before the Federal Reserve gives more signals on the easing of the economy.
What Should Investors Do While The Gold Price Is Falling?
The recommendation given by analysts is that long-term investors should not sell out and see this correction period as an opportunity to buy gold when it is at its lowest instead of perceiving this as a setback. The latest pullback may be good for people who have patience since the fundamental forces of the metal, such as central bank purchases and possible rate reductions, are still on the side of the metal.
In the meantime, short-term traders must monitor market clues such as actions of central banks, economic news around the world, and changes in geopolitics, which may lead to sudden price changes in gold and provide them with an opportunity to trade in the short run amid volatility.