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Gold price will come down drastically! Gold can be cheaper by so much money, know what is the reason?

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Gold price will come down drastically! Gold can be cheaper by so much money, know what is the reason?

New Delhi. If you want to shop for gold then there is good news for you. Although the price of gold has dropped significantly, but in the coming time, a further drop in prices can be seen. Experts are expecting a softening in the price of gold. This is because the US Treasury yields have increased. Also, due to the strong dollar, gold entered the bear market territory. There is a constant selling pressure on gold in Gold ETFs, because the upward momentum is not visible in gold.

Know what is the beer market?

When the price of an asset, commodity or securities falls by 20 percent or more from its record high and the yag declines for more than two months, it is called the beer market. PR Somasundaram, managing director of World Gold Council India, said that the holdings of Gold ETFs decreased by more than 2% in February due to rising bond yields and falling gold prices.




The reason for the fall in the price?

PR Somasundaram said that during this period, the holding of Global Gold ETFs has declined by 84.7 tonnes. He said that this is the 7th largest monthly loss in history so far. The holding of SPDR Gold Trust, the world’s largest gold-based exchange traded fund, reached its lifetime high of 1,278.82 on September 21, 2020, a decline of 200.5 tonnes or 15% by 4 March 2021. At the same time, the 10-year US bond yield continues to be an uptrend. They were trading at 1.55% today after reaching an all-time high of 1.61% in the last week of February 2021.

How cheap gold can be?

Kshitij Purohit, Product Manager, CapitalVia Global Research, said that gold on MCX is expected to trade between Rs 43,800 to Rs 44,000. At the same time, it can be between 1,685-1,660 on COMEX. He said that if such increase in bond yield continues, gold prices may fall to 41,500 per 10 grams. At the same time, Navneet Damani, Vice President of Motilal Auswal said that gold on MCX is estimated to be between 44,200 to 43,500.

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