Amid global tension and economic uncertainty, gold prices are witnessing major fluctuations. Recently, the price of gold has fallen from its record level to around ₹ 19,000 per 10 grams. This is raising questions in the minds of many investors and jewelery buyers whether buying gold now can be a profitable deal.
Last week, the price of gold in the Indian commodity market MCX closed at around ₹ 1,61,675 per 10 grams. This price is well below its lifetime high of ₹1,80,779 per 10 grams.
Why did gold prices fall?
According to experts, despite the increasing tension between America and Iran, there was no big rise in gold prices. A major reason for this is the strengthening US dollar. When the dollar strengthens, there is pressure on gold prices. Apart from this, the rise in crude oil prices and concerns about global inflation are also affecting the market. Experts say that right now gold prices are trading in a wide range and may fluctuate between ₹ 1,37,000 to ₹ 1,65,000 per 10 grams.
Can gold prices rise again?
Market analysts believe that if the price of gold crosses the level of ₹ 1,65,000 per 10 grams and stabilizes, the global market may rise again. Even in the international market COMEX, gold is currently trading below its record level. But due to increase in demand for safe investments, there is a possibility of further rise in prices.
What is the effect of geopolitical tension?
America’s policies and global political events are also impacting gold. There is uncertainty in the market due to the aggressive policies of former US President Donald Trump and global tension. In such an environment, investors often turn to safe investment options like gold and silver.
Should you buy gold now?
According to experts, the current decline could be a good buying opportunity for long-term investors. If there is a slight decline in prices then investors can buy gradually. However, before investing, you must understand your financial situation and market risks. Investing in gold is always considered better from a long term perspective.
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