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Gold Rate Future Prediction: Gold prices in India, currently at Rs 90,000 per 10 grams, may drop to Rs 56,000 due to increased supply and decreased demand. However, some forecasts suggest prices could rise to Rs 1 lakh per gram
An increase in supply is one of the reasons for the expected fall in gold prices. (Representative/Shutterstock)
Gold Rate Prediction: Gold prices have soared to record highs globally, including in India. However, reports suggest that a significant decline in gold prices may be imminent.
It is being speculated that gold prices could drop to as low as Rs 56,000 per 10 grams. Let’s explore why and how such a decrease could occur and the factors behind this potential decline.
Currently, gold in India is trading at approximately Rs 90,000 per 10 grams. According to a report by ET, an analyst from the US-based Morningstar predicts that gold prices could plummet by 38% in the coming years. With a potential decline of around 40%, gold prices in India could reach Rs 55,000 per 10 grams. John Mills has provided several significant reasons for this anticipated drop in gold prices.
Also See: Gold Prices To Drop 38%? Market Analysts Predict Major Decline In Coming Years
An increase in supply is one of the reasons for the expected fall in gold prices. Mining profits reached $950 per ounce in the second quarter of 2024, and global reserves have risen by 9% to 216,265 tonnes.
Furthermore, while the supply of gold has increased, demand has decreased. Central banks worldwide are expected to slow their pace of acquisition. According to a survey by the World Gold Council, 71% of central banks plan to either reduce their gold reserves or maintain current levels.
Another factor is the peak level of gold prices, evidenced by a 32% increase in mergers and acquisitions in the gold sector in 2024. This indicates that the market has reached a peak price level.
However, some major financial institutions, such as the Bank of America, have forecasted that gold prices could reach $3,500 per ounce in the next two years. Similarly, Goldman Sachs expects gold prices to hit $3,300 per ounce by the end of this year. Should these predictions hold, gold prices in the Indian market could rise to Rs 1 lakh per 10 gram.
