Gold Price Fall: 4 Key Events Could Push Prices Below ₹1,00,000

1/8 Experts always consider gold as a safe investment. When there is tension or war in the world, uncertainty rises in other markets, attracting investors to gold. However, when peace returns to the world, gold prices tend to decrease. Currently, there are several signs indicating that gold prices per 10 grams may fall below ₹1,00,000 in the coming months. These four main reasons are worth investigating. Notably, American President Donald Trump is behind these four reasons.
2/8 Let’s look at the four reasons for the drop in gold and silver prices. 1. The trade war, tariffs, and supply chain tensions between the two powerful countries in the world, America and China, have been destabilizing the global market year after year. However, the news is that the two countries are nearing a trade agreement. The world breathes a sigh of relief. China had been increasing its gold holdings to compete with the United States, which led to a price hike.
3/8 However, the situation is changing. Meaningful discussions are ongoing between the two countries, and a significant trade agreement is imminent. If this happens, the stock market and industry investors will regain confidence. The U.S.-China trade agreement could be a significant trigger for gold and prices may decrease.
4/8 2. India-America trade agreement- India is the second largest consumer of gold in the world. Therefore, if a strong trade relationship is established between India and America, it will have a direct impact on gold prices. A new trade agreement will attract foreign investment in India, strengthen the rupee against the dollar, and improve the economy. When the rupee strengthens, buying gold in India will become cheaper as we can get the same amount of gold for less money.
5/8 As a result, gold prices in the international market will drop, even if the international rate remains stable. Investors interested in investing in gold may get some relief in the coming months. This is another significant reason that could push gold prices below ₹1,00,000 per 10 grams.
6/8 3. Israel-Hamas ceasefire- Middle East conflicts always have an impact on the global economy. The prolonged conflict between Israel and Hamas has not only increased human suffering but also created a fearful environment in the global market. Oil prices have risen, disrupted supply chains, and investors are seeking safe havens, buying gold. But now, news has come that peace talks between the two parties are advancing. Trump himself is leading this initiative. If it materializes, the market will stabilize. As a result, gold prices may fall. Investors diversify their money into safe stocks, bonds, and real estate.
7/8 4. Pakistan-Afghanistan ceasefire- Due to the volatile situation in South Asia, international investors are usually cautious. The enduring ceasefire between Pakistan and Afghanistan will boost economic stability and confidence in this region. Although these two countries do not make a significant contribution to international trade, a peaceful environment will open doors for trade, investment, and regional development.