Gold Price Forecast: After Dhanteras, gold prices are gradually decreasing. Earlier, gold prices were at record highs. In such a situation, investors and customers wonder whether they should wait to buy gold or whether it is profitable to buy at the current price.
Manish Sharma, AVP, Commercials and Currencies at Anand Rathi and Stockbrokers said that both gold and silver prices may continue to decline at present. The rush seen during the festive season is now waning.
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What might an investment strategy look like?
After nearly nine weeks of continuous gains, the main reason for the fall in prices was trade progress between India and China. The second reason is the increase in supply in the world market. According to Sharma, due to these reasons, investors have started taking profits in the silver market. From August 22 to Diwali, both gold and silver saw a huge rise. However, after trade tensions between the US and China eased, investors are currently moving away from buying gold as a safe-haven investment.
The US Federal Reserve (US Fed)’s two-day policy meeting ends on Wednesday, after which it may announce a 25 basis point cut in interest rates. However, market experts believe that the move may not have much impact on gold prices, but Fed Chairman Jerome Powell’s announcements and comments may influence investors’ strategy.
Expert advice
US Treasury Secretary Scott Besant said a trade deal could be negotiated during a meeting between US President Donald Trump and Chinese President Xi Jinping this week. Due to this, investors’ attention is currently turning towards the stock market.
Market experts believe that the short-term correction in gold may continue. However, slow buying at current levels could be profitable for long-term investors, as a decline in the dollar index towards the end of the year and geopolitical instability could once again support gold. As a result, the price of gold may increase.
