A significant decline in gold prices is being observed ahead of the festivals of Diwali and Dhanteras, presenting a favorable opportunity for buyers. Previously, such a sharp drop in gold prices immediately before the festivals was not anticipated.
On Friday, a substantial fall in the price of gold on the MCX exchange was recorded; the price decreased by approximately 2.50% to reach the mark of 138,250.00 rupees per 10 grams. This contrasts with January of this year, when the price of 24-carat gold was up to 1.91 lakh rupees. Thus, gold has become cheaper by more than 50 thousand rupees per 10 grams, and on Friday, it had already dropped by more than 4,000 rupees.
For retail buyers and investors, this could be a favorable moment to purchase gold jewelry or investments, given that gold is currently available at lower prices compared to last year. However, considering the current global uncertainty, experts advise against making large lump-sum purchases.
It is recommended to buy gold in installments or through a SIP system to balance the average purchase cost. If it concerns investments, one should focus on the long term—no less than two years, as gold is traditionally considered a hedge against inflation and provides better returns in the long run.
The main factors influencing gold price fluctuations are global circumstances. These include geopolitical tensions worldwide, particularly the conflict between the US and Iran. Furthermore, many major countries are raising interest rates, and the crude oil price remains above $110 per barrel, indicating continued instability in the world economy.
Despite the current difficulties, financial analysts believe that the attractiveness of gold as a reliable investment does not diminish in the long term. They predict that after inflation decreases in America and subsequent interest rate cuts, the luster of gold may return.
