Gold Price Crash in India: Gold in India has lost some of its luster these days. After remaining at record highs for several months, gold prices are now experiencing a sharp decline. According to a report by GoodReturns, the price of 24-carat gold has fallen by nearly ₹100,000 per 100 grams in the last 10 days.
24-carat gold slips below ₹12,100
On October 28, the price of 24-carat gold fell to ₹12,082 per gram, compared to ₹13,084 per gram on October 18. Similarly, 22-carat gold fell by ₹225 to ₹11,075 per gram, and 18-carat gold fell to ₹9,062 per gram.
This decline comes at a time when gold prices have seen a nearly 60% increase this year due to global uncertainty, trade tensions, and demand for safe-haven investments.
What are the reasons behind the decline?
The main reason for the decline in gold prices in the international market is the upcoming meeting of the US Federal Reserve and positive trade talks between the US and China. Both these events have strengthened the dollar, weakening demand for gold. A strong dollar is generally considered a negative sign for gold.
According to Trading Economics, gold futures for December delivery closed at ₹1,20,957 per 10 grams on MCX, while gold remained at around ₹3,925 per ounce in the international market.
Silver also fell
Silver prices have also fallen along with gold. While silver reached a high of around ₹2 lakh per kilogram in early October, it has now fallen to ₹1.51 lakh per kilogram.
According to analysts, silver prices were previously supported by supply shortages and industrial demand, but the easing of global tensions has led to a softening of prices.
Experts’ Opinion: An Opportunity to Invest with Caution
Aksha Kamboj, Vice President of the India Bullion and Jewellers Association (IBJA), says, “This decline is due to profit-booking and a strengthening dollar. While gold remains a safe-haven investment, investors should remain cautious in the near term.”
Analysts at Motilal Oswal Financial Services believe, “This decline is a good buying opportunity for long-term investors. The direction of gold’s movement in the coming months will depend on the Fed’s policies.”
City-wise 24-carat gold prices (per gram)
Delhi: ₹1,209.6
Mumbai: ₹1,208.1
Chennai: ₹1,208.1
Kolkata: ₹1,208.1
Bengaluru: ₹1,208.1
Hyderabad: ₹1,208.1
Jaipur: ₹1,209.6
Lucknow: ₹1,209.6
What’s next?
According to market experts, volatility may persist in the short term, but gold’s position may strengthen again in the long term. Currently, the ₹12,000 per gram level is considered a strong psychological support for the Indian market.
Experts at the London Bullion Market Association’s Kyoto meeting said that gold could rebound in the coming year, and the possibility of reaching $5,000 per ounce cannot be ruled out.
Chris Weston of the Pepperstone Group said, “The fundamentals for gold remain strong. Buyers are returning to the market after the recent decline.”
Despite the end of the festive season and global market volatility, experts believe this decline could be a golden opportunity for long-term investors to “buy on dips.”