Gold Prices May Fall 15% Soon – Smart Time to Invest? : SRINAGAR: Gold prices, which have soared in recent months, may now be approaching their peak and could decline by 12–15 per cent in dollar terms over the next two months, according to Quant Mutual Fund. The fund, however, maintains a constructive view in the medium to long term, advising investors to continue allocating a meaningful portion of their portfolios to precious metals, The Economic Times reported.
Jammu-Srinagar Vande Bharat train time table.
On Tuesday, retail gold prices in India hovered around Rs 96,960 per 10 grams. Including a 3 per cent Goods and Services Tax, the total cost reached Rs 99,868 per 10 grams. Analysts attribute the recent surge in gold prices to heightened economic uncertainty, inflation fears, and geopolitical tensions, which drove investors to treat gold as a safe-haven asset.
Despite the rally, concerns are mounting over declining demand. Gold jewellery sales in India have fallen by 30 per cent to an average of 1,600 kg over the past fortnight, as per data from the India Bullion & Jewellers Association (IBJA). “In the first fortnight of May, which was followed by Akshaya Tritiya, there was some momentum as prices started falling, touching Rs 92,365 per 10 gm on May 15. But since then, the price of the yellow metal has again started to move northwards, which has dampened the demand,” said Surendra Mehta, National Secretary of IBJA.
A US-based analyst from Morningstar has forecasted a more dramatic long-term correction, predicting a 38 per cent drop in gold prices over the coming years, The Economic Times noted.
Kavita Chacko, Research Head for India at the World Gold Council, stated that price stability could encourage a rebound in consumer demand in India, the world’s second-largest gold market.
Meanwhile, global trade tensions continue to exert pressure on gold markets. Investors are closely watching for a possible call this week between former US President Donald Trump and Chinese President Xi Jinping. The call follows accusations by Trump that China has failed to uphold commitments to lower tariffs and trade barriers.
In response, the European Commission has signalled resistance, urging the US to reduce or eliminate tariffs. Nevertheless, Washington is proceeding with plans to double tariffs on steel and aluminium imports to 50 per cent. A draft letter seen by Reuters suggests the US is also pressing countries to revise their trade offers by Wednesday in an effort to meet a five-week negotiation deadline.kashmir life.