Gold Prices Drop Significantly: The Right Time to Invest?
Gold prices have experienced a significant decline, making it an opportune time for buyers. In Chennai, the price of gold has dropped by ₹520 per sovereign and ₹65 per gram. A sovereign is now priced at ₹56,560, while a gram is being sold for ₹7,070. Silver prices have also decreased, with a gram now costing ₹99 after a ₹1 drop.
This decline in gold prices is linked to the recent crash in US markets, which is expected to impact the Indian market as well. In the US, gold prices have fallen by up to 3%, with an ounce trading at $2,589.91—a 2.1% decrease compared to its price of $2,653.30 a month ago on November 18. Similarly, silver prices have dropped by 3.5%.
Reasons Behind the Drop
Several factors are driving this fall in gold prices:
- A 25-basis-point interest rate cut announced by the US Federal Reserve.
- The US dollar index reaching a two-year high.
- Market fluctuations attributed to economic policies and geopolitical uncertainties, including those linked to Trump.
The price of gold has been fluctuating over the past three months, and this volatility is expected to persist until early next year. Economists predict that gold prices might fall further by ₹1,000 per sovereign in the remaining days of this week.
Expert Advice
Despite the current volatility, experts suggest that buying small quantities of gold during price dips can be a prudent investment strategy. Although gold prices are low now, they are projected to rise in the long term, with predictions suggesting a potential increase to ₹70,000 per sovereign by December next year.
For now, this price dip presents a golden opportunity for those looking to invest in smaller amounts.
