Gold and Silver Prices Plummet: What Lies Ahead?
Mumbai, October 30: The prices of gold and silver have witnessed a significant decline, leaving many wedding shoppers pleased but investors bewildered. Just a while ago, these precious metals reached record highs, but now they are experiencing sharp fluctuations. The pressing question is whether gold and silver will drop further or if this decline presents a buying opportunity for long-term investors.
Gold has fallen over ₹51,000 from its record high of ₹1,93,096 per 10 grams, set on January 29 this year. Meanwhile, silver, which peaked at ₹4,20,048 per kilogram, has dropped to over ₹2.33 lakh.
Experts have weighed in on the situation. Anindya Banerjee, Head of Currency and Commodity Research at Kotak Neo, notes that the pressure on gold remains despite the U.S. Federal Reserve’s decision to keep interest rates stable. He suggests that gold could fall to around ₹1.42 lakh per 10 grams. Banerjee advises caution, stating that as long as gold remains below $4,120 per ounce in the international market and ₹1,46,000 on MCX, a bullish trend may not be on the horizon.
Regarding silver, Banerjee is more cautious due to its volatility and uncertain industrial demand. He highlights that the key support level for silver in the international market is $50 per ounce. If prices fall below this, the next support levels could be $48 and $46 per ounce.
Rajeev Sharan from Brickwork Ratings views the recent dip in gold prices as a normal correction rather than a trend reversal. He attributes the decline to profit-taking after previous highs, a strong dollar, rising U.S. bond yields, reduced expectations for interest rate cuts, and geopolitical tensions that have diminished gold’s appeal as a safe investment.
Ajay Kedia of Kedia Commodities points out that silver has dropped over 54% from its January high, reflecting broader economic and geopolitical issues. He remains optimistic about silver’s long-term prospects, citing industrial demand and potential supply deficits as factors that could support prices. Kedia predicts that silver could reach $90 to $100 per ounce by the next Dhanteras, although this remains a speculative outlook.
As the market continues to fluctuate, investors are advised to monitor the situation closely and make purchasing decisions based on market trends and personal needs.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.