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Gold Price Falls Below ₹1.50 Lakh: Is It The Right Time To Buy Before Diwali?
- •Gold prices in the domestic market have dropped below the psychological level of ₹1.50 lakh per 10 grams, standing at ₹1,48,473 according to IBJA.
- •In the international market, spot gold has fallen by 23% from its January peak, dropping from $5,419 to around $4,155 per ounce.
- •Experts advise buyers not to wait for the absolute bottom but to purchase gold in tranches over the next few weeks ahead of Diwali.
- •For pure investment, experts recommend Gold ETFs or digital gold to avoid making charges, while jewelry buyers can start purchasing based on wedding needs.
- •Jewelers expect a 15 to 20 percent surge in sales during the festive and wedding season, with higher demand for lightweight jewelry.
Key Questions Answered
Gold prices have fallen significantly due to rising US Treasury yields, the continuous strengthening of the US dollar, and changes in global geopolitical equations. In the international market, gold crashed by 23 percent from its record all-time high, bringing domestic prices in India below the psychological level of Rs 1.50 lakh per 10 grams.
Commodity experts suggest that while gold valuations are attractive below Rs 1.50 lakh, buyers should avoid trying to time the absolute bottom. Instead, consumers are advised to purchase gold in three to four tranches over the coming weeks to navigate ongoing market volatility.
If you need physical jewelry for weddings or family traditions, purchases can begin at current market levels. However, for pure investment and return purposes, Gold ETFs or digital gold are better options because they help you avoid the 10 to 25 percent making charges levied on physical jewelry.
