Gold prices in the country’s capital, Delhi, continue to fall. 10 grams of 24 carat gold in Delhi fell to Rs 59,170. Notably, gold prices in Delhi fell by nearly 6 percent in a month. Gold prices touched a high of Rs 62,720 on May 24. After this, various questions are being raised. Is it the right time to buy gold? Or should investors wait for further declines in gold? Let’s know what the experts have to say about this.
Speaking to FE, Augmont Gold for All director Sachin Kothari said gold has lost its safe-haven appeal in the short term. In fact, central banks around the world are very strict about their monetary stance. To control inflation, the US Fed has raised interest rates by 500 bps, the BoE by 475 bps and the ECB by 400 bps in the last 15 months.
Will the price of gold fall further?
Kothari says gold prices may fall 3-4 percent from current levels and remain weaker in the short term. Kothari said gold prices remain weak and are expected to decline by 3-4 percent from current levels as we see further rate hikes in the next two months. Chairman of Bighnaharta Gold Limited, Mahendra Lunia, while talking to FE, said that the price of gold has been falling in recent times. However, looking at global economic statistics and central bank activities, it seems that the decline in gold prices is only due to profit booking.
According to Lunia, central banks around the world are either keeping interest rates on hold or keeping interest rates on hold. Hence, we believe that not much downside is expected, though profit booking may continue for some time.
Is this the right time to buy gold?
According to Kothari, this is a good time to buy gold as the downside is limited and the long-term outlook is still bright as the economy is expected to tip into a recession by the end of 2023. Hence the record rise in gold prices. In fact, due to the weakness of the economy, investors turn to safe havens and the demand for gold increases, leading to higher prices. According to experts, gold prices could touch 65,000 per 10 grams if the world goes into recession by the end of the year and the central bank fails to make a safe landing.