Gold Price Outlook: There has been a huge fall in the prices of gold and silver today. Today, on the day of Chhath Puja, the price of gold has fallen by Rs 1600 on the Multi Commodity Exchange (MCX). A fall in the price of silver was also seen on MCX on Monday. On October 27, silver with expiry of December 5 fell by Rs 4,560 or 3 per cent in early trade to Rs 1,42,910 per kg, which is Rs 1400 less than the previous close. The price of gold is expected to fall further in the coming days.
Will the price of gold fall further?
Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services Limited, says that there is a possibility of a downward trend in gold prices in the coming days. There has been a strong rise in the price of gold for the last few months. After recording its biggest weekly gain in five years last week alone, gold prices are softening. At the same time, after the tremendous rise in the beginning of the year, the price of silver also fell by more than 5 percent in just one session amid profit booking by investors. Now the question arises that why has the price of gold suddenly started falling?
Why did gold suddenly become cheaper?
First of all, the geopolitical tension has reduced to some extent due to the possibilities of ceasefire between Russia-Ukraine and Israel-Hamas. Apart from this, investor anxiety has reduced amid expectations of a trade deal between America and China.
US President Donald Trump said during the ASEAN conference in Malaysia on Sunday that “we are going to make a good deal with China.” This week he is also going to meet Chinese President Xi Jinping. On one hand, the tension between America and China seems to be gradually reducing.
On the other hand, after gold reaching a record high level of $ 4400 per ounce on COMEX and the price of silver also increasing by more than 85 percent, profit booking is now taking place. Apart from this, the market has fallen sharply due to panic selling due to margin calls and strong dollar index.
Talking to Business Today, Navneet Damani, Commodity Researcher, Motilal Oswal Financial Services Limited, says that now the price may fall by another 5-6 percent. That means gold can become cheaper by Rs 6000-7000.
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