There is a continuous decline in the gold price in the country’s capital Delhi. The price of 10 grams of 24 carat gold in Delhi has come down to Rs 59,170. The special thing is that the price of gold in Delhi has come down by about 6 percent in a month. On May 24, gold prices had reached a high of Rs 62,720. Now after this many types of questions are arising. Is it the right time to buy gold? Or should investors wait for further downside in gold? Let us also tell you what the experts have to say about this.
Speaking to FE, Sachin Kothari, director of Augmont Gold for All, says that gold has lost its safe-haven appeal in the short term. In fact, Central Banks around the world are very strict about their monetary stance. To control inflation, US Fed has increased interest rates by 500 bps, BoE by 475 bps and ECB by 400 bps in the last 15 months.
Will gold prices fall further?
Kothari says that the price of gold may fall by 3-4 percent from the current level and may remain weak even more in the short term. Kothari says gold prices are expected to remain weak and fall by 3-4 per cent from current levels as we will see more rate hikes in the coming two months. Talking to FE, Chairman of Vighnaharta Gold Limited, Mahendra Lunia said that in the recent past, there is a decline in the price of gold. However, looking at the scenario of world economic data and the actions of central banks, it seems that the fall in the price of gold is being seen only due to profit booking.
According to Lunia, the central banks around the world are either maintaining the increase in interest rates or keeping interest rates free. Hence, we believe that not much downside is expected, while profit-booking may continue for some time.
Is this the right time to buy gold?
According to Kothari, this is a good time to buy gold as the downside is limited and the long-term scenario is still bullish as a steep hike in rates is expected to lead the economy to a recession by the end of 2023. Therefore, a record rise can be seen in gold prices. In fact, due to the weakening of the economy, the investors turn towards safe haven and the demand for gold increases, due to which the prices rise. According to experts, by the end of the year, if the world is in the grip of recession and central banks fail in safe landing, then the price of gold can reach 65 thousand per ten grams.
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