Gold, silver prices dip, may remain low until January first week

Gold and silver prices, which had been steadily rising over the past seven to eight months, have seen a significant drop this week, offering relief to buyers and investors. The price of 22-carat gold, which had crossed Rs.7,440 per gram, fell to Rs.7,100 per gram in the city’s bullion market on Saturday. Similarly, 24-carat gold, which had touched Rs.8,000 per gram, is now priced at Rs.7,590, marking a reduction of Rs.410. Silver prices also experienced a decline, dropping from Rs.99 per gram to Rs.88.70 per gram.

Despite the offseason for weddings, several jewellery stores are offering additional discounts to boost gold sales. In some outlets, 22-carat gold was sold at Rs.6,999 per gram over the weekend. Experts predict that gold prices may remain low until the first week of January, making it an opportune time for buyers.

Global factors influence trends: Expert
General Secretary of the Karnataka State Jewelers Association Dr B Ramachari explained that global factors are influencing gold price trends. He noted that gold is considered a safe investment during uncertain times, not only as a decorative asset but also as a reliable financial reserve during emergencies. The festive break and reduced investment activity during the Christmas season have temporarily lowered demand for gold, contributing to the recent price drop. However, this decline is expected to be short-lived, with prices likely stabilising or increasing after January.

In recent times, stock market investors seeking secure alternatives have shown a growing preference for gold. The earlier surge in gold prices was attributed to high demand coupled with limited supply, and experts had even predicted that gold prices could reach Rs.10,000 per gram in the coming years.

Looking ahead, Dr Ramachari highlighted the potential impact of policy changes by the United States President-elect Donald Trump, who is set to assume office on January 20. He noted that if taxes are imposed on stock investments, investors may turn to gold, driving up its demand and price. The trajectory of gold prices will largely depend on the new policies introduced by the US administration in the coming months.