Gold Price: Gold prices will fall sharply, from Rs 122,000 the price will directly reach Rs 77,700

Gold Price: Investors are excited about the new highs reached by gold and silver on Diwali, but experts are now sounding a warning. They say gold prices could soon fall. 

It is estimated that the price of gold could fall from ₹1,22,000 to ₹77,700 per 10 grams. Find out why experts have cautioned investors.

Gold and silver will touch new heights

Gold and silver prices have seen a sharp rise over the past few months. Both precious metals have reached near all-time highs. Investors and the public expect gold and silver to reach new heights by Diwali. 

However, experts are now warning investors. They believe gold prices may fall soon. It is estimated that the price of gold could fall from ₹1,22,000 to ₹77,700 per 10 grams. Find out why experts have alerted investors.

Gold and silver prices likely to crash, experts warn

Amit Goyal, co-founder and chief global strategist at PACE 360, says the current rally is unsustainable. His company manages over $2.4 billion in assets. 

According to Goyal, current gold and silver prices have reached well above their intrinsic value, and a major market correction, or crash, is likely. Amit Goyal said this is the biggest "party" gold and silver have ever seen. 

In the past 40 years, only twice have gold and silver performed well when the dollar index was weak. Both times, the market was followed by a sharp decline.

Gold and silver prices hit new highs, experts warn of a crash

Currently, the price of gold in the international market is around $4,000 per ounce and silver around $50 per ounce. Meanwhile, in India, on October 8, the price of 24-carat gold in Delhi was trading at ₹1,22,540 per 10 grams and the price of silver was trading around ₹1,57,900 per kilogram. 

Amit Goyal, co-founder of PACE 360, says that the current bullish levels are now nearing psychological limits, which usually signal the end of a major rally. 

He believes these levels may be crossed in the coming days or weeks, but a sharp sell-off could occur in the market immediately afterward.

A major crash in gold and silver? Expert warns

The current rally in gold and silver prices isn't sustainable. Amit Goyal, co-founder of PACE 360, estimates that gold could fall by 30-35%. 

He cited the examples of 2007-08 and 2011, when gold prices fell by up to 45% after a major rally. If this were to happen again, gold prices in India could fall from ₹122,000 to around ₹77,700 per 10 grams.

The situation is even more serious for silver. According to Goyal, silver is currently experiencing the most euphoria, so a decline of at least 50% is possible. This means that the price of silver could fall from Rs 1,54,900 to Rs 77,450 per kilogram.

When will I get another chance to invest?

PACE 360 expert Amit Goyal says that if gold falls to $2,600-$2,700 per ounce in the international market, it will become a good buying opportunity for investors. 

According to Goyal, at that level, gold will once again prove to be the world's safest and most attractive investment. However, he is not very optimistic about silver. 

Industrial demand for silver may weaken due to the global economic recession, which could increase the risk of investing in it.

Recession may reduce demand for silver

Amit Goyal, co-founder of PACE 360, predicts a deep economic recession, led by the US, could occur in the next two to three years. 

This could impact silver demand in industries such as photovoltaics, semiconductors, and electric vehicles. Goyal says that although these sectors use silver extensively, a recession could lead to a decline in demand.

He also warned that while there may be small rallies in gold and silver in the coming days, they won't be sustainable. According to Goyal, a major "regime change" is now underway in the market, making gold and silver attractive options for long-term investors.

Warning for investors

Amit Goyal, co-founder of PACE 360, advises investors to avoid investing in gold and silver for now. According to him, only after the upcoming decline will these two precious metals offer a real investment opportunity. 

Goyal cautioned that the current market rally is somewhat of a bubble, and prices could soon crash. Therefore, investors should exercise restraint and wait for the right time.