Copyright ibtimes
The rush for gold may slow down after Diwali, as the yellow metal is expected to open on a weak note in the domestic market on Wednesday. This comes after international gold prices fell sharply by 5.5 per cent -- the steepest decline since August 2020. Analysts expect Indian gold prices to correct to around Rs 1.22–Rs 1.23 lakh per 10 grams when markets open on Wednesday. The fall in global prices has triggered profit-booking among investors who had benefited from gold's recent rally. Silver too lost over 2 per cent, trading near $47.6 per ounce after tumbling 7.1 per cent in the previous session. Gold and silver both extended their slide from record highs, while Asian stock markets showed mixed trends following a muted session on Wall Street. Experts said the sharp drop in precious metals reflects a wave of profit-taking after their rapid rise this year. "Many investors have grown cautious, believing that gold's rally may have entered a bubble zone," analysts noted. This year's rally had been driven by worries about the fiscal health of major economies, especially the US, and expectations that the Federal Reserve could cut interest rates further by the end of the year. Gold prices had surged nearly 60 per cent this year, fuelled by central banks diversifying away from the dollar and retail investors buying into exchange-traded funds. Market sentiment also turned cautious after signs of possible progress in trade talks between the US and China. US President Donald Trump said he expects a "good deal" in his upcoming meeting with Chinese President Xi Jinping, though he admitted the talks might still face hurdles. Analysts believe that while gold remains a preferred safe-haven asset in the long term, short-term volatility is likely to continue as investors balance profit-taking with global economic signals. (With inputs from IANS)
