Gold Prices Decline: Gold Falls by ₹8,000 in Just Four Days
In Brief
The storm of rising gold prices has calmed
Will gold come within a lakh?
Gold has fallen by 6% in the global market
During Diwali, the price of gold, which had gone beyond the reach of the common people, fell by 8,000 rupees per tola in the four days after Lakshmi Puja; while the price of silver decreased by 38,000 rupees per kilogram. On Narak Chaturdashi, gold was sold at a rate of 131,000 rupees per tola; while the price of silver was 191,000 rupees per kilogram. Four days after Diwali, on Saturday, gold fell to 123,000 rupees per tola, and silver fell to 153,000 rupees per kilogram. In the last eight days, gold worth 1,700 crore rupees was purchased in the state. Of this, Mumbai's share was 1,100 crore rupees. Approximately 460 tons of gold were sold in the state, including Mumbai, Nashik, Jalgaon, and Pune, with Mumbai alone accounting for the highest sale of 320 tons.
Gold soared to the sky during the festive season. It was speculated that prices might reach one and a half lakh. But as soon as Diwali Padwa arrived, the decline in gold began. Several reasons emerged for this. Due to profit booking, many bought gold when it was cheap and brought it to the market for sale as prices soared. This directly affected the prices. As the supply of gold in the market increased, the prices fell. Another reason for the decline in gold's stature is the strengthening of the dollar.
The American dollar was declining in the global market. But when the dollar strengthened, other countries reduced their gold purchases as soon as the dollar became strong. Investors shifted their focus from gold to the dollar, causing the price of gold to fall further. The third reason for the decline in gold is the drop in demand. According to the India Bullion and Jewelers Association (IBJA), there was a rush for purchases on Dhanteras and Diwali. Now there is no large crowd in the market. Due to the reduced demand during the festive season, prices came under pressure and gold became cheaper.
Will gold become cheaper than 1 lakh?
There is a question whether this decline in gold will continue. Many claim that gold will fall below 1 lakh. According to many experts, this is a technical correction. When something becomes expensive, it is natural for it to decline a bit. This is an attempt to stabilize the market at a certain rate.
According to experts, the likelihood of gold dropping suddenly is low. Currently, the price of gold is low. Until then, investing is profitable. But the upcoming period is one of wedding ceremonies. Therefore, there is a possibility of gold prices increasing because there is high demand for gold during this time. Hence, experts believe that unless gold crashes, it cannot be said that it will fall below one lakh.