The price of gold came to a one -month low on 15 May. Gold declined in both domestic and foreign markets. Spot gold fell 1.3 per cent to $ 3,136.97 an ounce in the international market. The US Gold Futures slipped 1.5 per cent to $ 3,140 an ounce. This is the lowest price of gold in the foreign market since April 10. Here, there was a big decline in gold in India too. In the Commodity Exchange MCX, gold futures were running at Rs 91,150 per 10 grams in early trade with a weak of Rs 1.33 per cent, or Rs 1,115.
Last month, gold made a record of height
This decline in gold is shocking. This has scared investors who were investing in it by seeing the tremendous boom in gold till recently. Gold in MCX reached a record height of Rs 99,358 per 10 grams last month. Now it has fallen to Rs 91,150 per 10 grams. In the international market too last month, Gold set a new record of $ 3500 an ounce. Now it has come to $ 3,136. Gold has fallen more than 10 percent from its all -time record high.
The reason for the continuous decline in gold
Experts say that the glow of gold is fading due to low geopolitical tension. Investors are withdrawing money from gold and putting in assets with more returns like shares. The big hand in this is of the trade deal between the US and China. This deal has stopped the fight over tariffs between the US and China. It is said that talks are going on with some more big countries including India regarding tariffs. An agreement may be announced soon. On the other hand, there is a way of reconciliation between Russia and Ukraine.
Short term is expected to continue to fall
Analysts believe that gold prices in the domestic market may fall to Rs 87,000-88,000 per 10 grams in short term. On the other hand, gold in the foreign market can go from 3,050 to 3,000 dollars per 10 grams. Rahul Kalantari, Vice President of Commodities in Mehta Equities, said, “The major reason for the decline in gold is profit taking. The impact of increasing investment in high risk assets is visible on gold.”
What should you do?
Moneycontrol told investors about the estimate of weakness in gold in the short term. This major decline in gold is a great chance for those investors to shop in gold. Investors should invest in a long -term in terms of unloading gold prices in short term. Gold outlook is strong in the long term. Investors can shop a little in gold at every decline. This will make their investment in gold at good level in the long term. Financial Advisors recommend holding 10-15 per cent gold stake in investment portpolio.