Many experts have their own opinions on the upside and downside risks of gold. Meanwhile, one expert said that with gold prices reaching record highs, investors should now ... read more

Gold and silver prices continue their upward trend, reaching close to ₹120,000. The spot price of gold in Mumbai's bullion market (Gold Price Today) has reached ₹1,19,059 per ten grams. Gold rates have been rising steadily for the past 10 years, and this year, gold surpassed the crucial ₹1 lakh mark. Consequently, people are hesitant to purchase gold at current prices and are considering making new purchases if prices decline.

Different experts and brokerage houses have differing opinions on the potential for gold prices to rise or fall. Meanwhile, Amit Goyal, co-founder of PACE 360, a New Delhi-based asset management company with a value of over ₹21,000 crore, said that gold and silver prices could fall sharply after their record-breaking gains.

What else did the expert say?

Amit Goyal warned that the recent rally in precious metals suggests a bubble, and investors should be prepared for significant declines in the coming months. Gold prices have hit record highs several times this year and are hovering around $4,000 per ounce in the international market.

'There have been only two such occasions in 40 years'

In a TV interview, Amit Goyal said, " This is the biggest jump in gold and silver prices seen in a very long time. In the last 40 years, there have been only two occasions when gold and silver have performed so strongly, and the dollar index has either been weak or falling. However, after this rise, gold and silver prices fell significantly on both these occasions."

Amit Goyal believes these key psychological milestones could signal the end of this rally. "I think both of these milestones are likely to be reached in the next few days, or perhaps even weeks," he said. He added that a strong selling spree could follow.

If there is a 30-35% drop, where will the price reach?

If this happens, you can expect a 30-35% drop in gold prices. Amit Goyal warned, citing similar events in 2007-08 and 2011, when gold prices fell by 45% after a major rally. "I think this correction will take about a year," he said.

This commodity strategist believes that gold could fall to $2,600-2,700, or $80,000-$84,000 per 10 grams, before it becomes attractive again. He said that at this level, gold will once again be the best investment in the world.

PC:Jagran