Gold Rates Fall in U.S.: Will Indian Markets Follow the Trend?

Gold prices in the United States recently declined from their historical highs. On April 21, gold hit an all-time high of $3,432.77 per ounce , as reported by Reuters. By April 23, prices had fallen close to 2% to $3,318.71 per ounce. 

The fall came after U.S. President Donald Trump chose to withdraw his threat to remove Federal Reserve Chairman Jerome Powell and his positive comment on a possible trade deal with China. 

The relaxation of political tensions dampened investors' needs for gold as a safe-haven asset, causing the price decline. Experts, such as OANDA's Kelvin Wong, pointed out that even though the recent events initiated the selloff, there is still room for gold prices to increase in the future. 

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Will Gold Prices in India Rise?

India, being the largest gold-consuming country in the world, has also witnessed a dip in gold prices. According to Goodreturns, the 24-carat gold on April 23 reduced by ₹3,000 for every 10 grams and declined to ₹98,350. The 22-carat gold reduced by ₹2,750 for every 10 grams and came down to ₹90,150. 

This decline follows the record high in gold prices in India to ₹1,02,170 for 10 grams on April 22.  The fall in prices is due to the worldwide drop in gold prices as well as a strengthening of the U.S. dollar, making gold pricier for currency holders. 

What to Expect Next?

Although gold prices have fallen in recent times, analysts believe it is a short-term correction. Geopolitical tensions, inflation fears, and central bank policies would make future gold prices dependent on these factors. Analysts forecast gold to touch new heights if economic uncertainties continue. 

In India, gold prices are also affected by factors like the rupee's exchange rate, import duties, and domestic demand. As the wedding season approaches, demand for gold may increase, potentially supporting prices.

Note: Gold prices are subject to market fluctuations. Investors should stay informed and consult financial advisors before making investment decisions.