The price of gold is experiencing a significant decline in Indian markets, with a potential drop of nearly 40% bringing it down to around Rs 55,000 per 10 grams. A strategist at Morningstar, John Mills, expects gold prices to fall from $3,080 per ounce to $1,820 per ounce due to economic uncertainty and geopolitical tensions.
Several factors are driving the decline in gold prices, including increased supply, declining demand, and market saturation. Gold production has surged, with mining profits reaching $950 per ounce, while global reserves have expanded by 9% to 2,16,265 tonnes. Central banks may also slow their acquisitions of gold, as a World Gold Council survey found that 71% plan to reduce or maintain their holdings.
Despite this, some major financial institutions remain optimistic, predicting a surge in gold prices. Bank of America expects gold to reach $3,500 per ounce in the next two years, while Goldman Sachs predicts a year-end price of $3,300 per ounce. However, the coming months will determine whether gold sustains its momentum or faces the projected decline.
Source: https://economictimes.indiatimes.com/news/new-updates/gold-prices-to-fall-below-rs-56000-morningstar-analyst-predicts-nearly-40-decline-as-yellow-metal-hit-all-time-high/articleshow/119933345.cms?from=mdr