Gold Price Prediction: How much will gold cost by Diwali? Experts share big update amid ongoing price decline
Analysts believe that if geopolitical tensions ease, gold prices in the domestic market could climb to around Rs 1.60 lakh per 10 grams by Diwali
Gold, Silver Rate Today July 19: Is gold trading higher? Check 18, 22, 24 carat Gold prices in Chennai, Mumbai, Delhi, Kolkata(Photo Credit: IANS)
New Delhi: There has been a continuous decline in the gold and silver rates for the past few days, however, both the metals saw a slight recovery on Friday. On the Multi Commodity Exchange (MCX), gold for August delivery settled at Rs 1,41,006 per 10 grams, up Rs 658. Silver also gained Rs 436 to close at Rs 2,16,449 per kilogram. Gold prices have fallen by nearly 8 percent over the past month despite Friday's rebound, leaving investors waiting for a stronger recovery.
It is important to note that the growing geopolitical tensions in the Middle East and a stronger US dollar have weighed on investor sentiment. While weaker-than-expected US inflation data provided some support to gold and silver, it was not enough to offset concerns that escalating tensions could discourage the U.S. Federal Reserve from cutting interest rates.
The peace agreement reached between the United States and Iran has now completely collapsed, and the latest inflation data does not yet reflect the impact of the renewed conflict. Amid this uncertainty, the US Dollar Index has strengthened to around 100.50. A stronger dollar makes gold more expensive for overseas buyers, reducing demand and putting downward pressure on prices.
Will prices fall further?
As per the market experts, a sharp decline in gold prices is unlikely despite the recent volatility. According to them, prices have largely stabilized at current levels, and any further downside is expected to be limited to around 5 percent at most.
Is this the right time to buy?
The recent drop in prices could present a good buying opportunity for jewellery buyers. In the domestic market, gold is believed to have strong support around Rs 1.35 lakh per 10 grams. Experts therefore advise against delaying purchases in anticipation of a much steeper fall, as the likelihood of a significant correction appears low.
Will gold prices rise by Diwali?
Analysts believe that if geopolitical tensions ease, gold prices in the domestic market could climb to around Rs 1.60 lakh per 10 grams by Diwali. However, if uncertainty persists, prices are likely to remain range-bound between Rs 1.35 lakh and Rs 1.45 lakh per 10 grams.
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