Stories
Will gold prices drop below 1 lakh? Expert insights on market crash and buying time
- •Gold prices have witnessed a major decline following a record-breaking surge in international and domestic markets.
- •Compared to the peak rates on the Multi Commodity Exchange in August, domestic gold prices have dropped by more than 10%.
- •Market experts state that the possibility of gold prices dropping to Rs 1 lakh per 10 grams is practically non-existent under current conditions.
- •Factors like ongoing de-dollarization, geopolitical tensions, and continuous gold purchases by central banks continue to support gold prices.
Key Questions Answered
Following a record-breaking surge where gold futures on the MCX reached up to Rs 1,64,773 per 10 grams in August, prices witnessed a major decline down to Rs 1,45,991 per 10 grams. Similarly, international spot gold dropped from around $4,698 per ounce to approximately $4,130 per ounce.
Market experts state that the possibility of gold prices dropping to Rs 1 lakh per 10 grams is practically non-existent. For prices to reach that level, international gold would need to plummet to around $2,800 per ounce, whereas several key supportive factors like de-dollarization and geopolitical tensions remain in place.
Gold prices continue to receive support from ongoing global de-dollarization efforts, persistent geopolitical tensions, continuous gold purchases by central banks worldwide, and long-term inflation concerns.
