Gold Price May Fall Below One Lakh Rupees?

The proverb “What rises must fall” appears to be gaining relevance in the context of the gold market, as discussions intensify over a potential downturn in prices. At the international level, speculation is growing about a potential correction in gold rates. According to a report published by Bloomberg, Russia is reportedly preparing to settle its international trade transactions in US dollars. Notably, Russia which typically responds swiftly to such reports has maintained complete silence on this development. This has led market observers to believe that the report may hold credibility. Many analysts argue that this development is a key factor behind the recent decline in gold prices.

At the end of last month, the price of 10 grams of 24-carat gold on the Multi Commodity Exchange (MCX) touched a high of ₹1,80,779. However, by last Friday, it had fallen to ₹1,56,200. If the Bloomberg report proves accurate, analysts warn that gold prices could witness further sharp corrections in both futures and spot markets.

According to Amit Goyal, Chief Global Strategist at brokerage firm Pace 360, domestic gold prices have already declined by nearly 15 percent. If Russia formally agrees to dollar-based settlements, significant selling pressure may first emerge in gold ETFs, which could subsequently impact physical gold prices. Under such circumstances, he estimates that by the end of next year, the price of 10 grams of gold in India could fall below ₹1 lakh. In the international market, gold prices could decline to around $3,000 per ounce, he projected.