June 28 – After months of uncertainty and global tension, the yellow metal has started to lose some of its shine. Gold prices have fallen, marking the second straight week of decline, both in India and internationally. This drop is mainly due to investors turning away from safe-haven assets like gold and shifting their focus toward higher returns from stocks and bonds.
If you’ve been watching the market
or considering buying gold whether for weddings, investment, or savings this
price dip might just be the opportunity you've been waiting for.
Gold Prices Drop in India
On June 28, 22-carat gold
was priced around ₹8,930 per gram, a drop of ₹55 from the
previous day. Meanwhile, 24-carat gold was down to ₹9,742 per gram.
These prices represent a significant decline over the past ten days:
| Date | 22-Carat Price (₹/g) | 24-Carat Price (₹/g) |
|---|---|---|
| June 19 | ₹9,265 | ₹10,108 |
| June 28 | ₹8,930 | ₹9,742 |
| Change | -₹335 | -₹366 |
In domestic futures markets,
particularly on MCX (Multi Commodity Exchange), gold prices also dropped
by ₹1,630 per 10 grams during the week, reflecting the broader trend.
Why Are Gold Prices Falling Globally?
The global decline in gold prices is
tied to multiple macroeconomic factors:
1.
Easing Geopolitical Tensions
Earlier this year, escalating
conflicts like the Israel-Iran crisis had pushed investors toward gold.
Now, with signs of peace and de-escalation in the Middle East, the
urgency to hold gold as a risk-hedge has faded.
2.
Strengthening US Dollar & Treasury Yields
A stronger US dollar and
rising US Treasury bond yields make gold—an asset that doesn’t generate
income—less attractive. Investors can earn better returns elsewhere,
particularly in US equities or bonds.
3.
Improved Economic Sentiment
Global equity markets, especially in
the US, are performing well. The Nasdaq has hit record highs, showing
investor confidence in tech and growth stocks. With economies stabilizing and
inflation appearing more under control, the need for safety has reduced.
Global Gold Price Update
- Spot gold
has dropped by 1.2% to around $3,288 per ounce.
- US August futures
fell by 1.7%, closing the week with a nearly 3% total decline.
Such steep drops indicate not just
routine fluctuation, but a realignment of investor preferences.
What This Means for Indian Consumers
For Indian buyers, especially those
planning purchases during the wedding season or festivals like Diwali
and Dussehra, this fall in prices could be a silver—rather, golden—lining.
Opportunity for Buying Jewelry
If you’ve been waiting for prices to
cool down, this may be a smart time to buy gold jewelry. Prices are lower, and
sellers might also offer festive or seasonal discounts.
Long-Term Investment Option
Though gold has dipped, it remains a
long-term wealth-preserving asset. With inflation and other
macroeconomic risks always on the horizon, investing in physical gold, gold
ETFs, or sovereign gold bonds could still be wise—just at better
entry points.
What Should Investors Watch Next?
US Inflation and Fed Policy
Investors are keeping a close eye on
upcoming US inflation data, especially the Core PCE Index, which
is the Federal Reserve’s preferred measure. If inflation shows signs of
stubbornness, the Fed might delay rate cuts, potentially boosting gold prices
again.
Global Uncertainty
If fresh tensions arise—say between China
and Taiwan, or renewed conflict in Eastern Europe—the safe-haven
demand for gold might come back sharply.
Why Gold Fell Despite High Inflation Earlier?
Earlier this year, gold rallied
to historic highs, driven by inflation concerns and geopolitical shocks.
But that rally also set up a technical correction. Many traders saw the high
prices as an opportunity to book profits, which accelerated the sell-off
when demand started to weaken.
Expert Views
Anjali Verma, a commodity analyst at a Mumbai-based brokerage, said:
“The fall in gold prices is more of
a pause than a complete reversal. It reflects changing short-term sentiments,
not long-term fundamentals. Investors should assess their risk profile and
investment horizon before making decisions.”
Will Gold Prices Fall More?
It’s difficult to predict with
certainty, but here are the two likely scenarios:
If Markets Stay Positive
Gold may continue to face pressure
if equity markets remain strong and geopolitical tensions stay low.
If Inflation or Risks Rise Again
Any uptick in inflation or return of
uncertainty can quickly bring buyers back into the gold market.
What Should You Do Now?
Here are some action points for gold buyers and investors:
| Type of Buyer/Investor | Suggested Action |
|---|---|
| Jewelry Buyers | Consider buying now, before festive surge |
| Long-Term Investors | Use the dip to start accumulating |
| Short-Term Traders | Watch US data & dollar trend closely |
| SIP in Gold ETFs | Continue as planned |
Online Gold Rates in Key Indian Cities (June 28)
| City | 22-Carat (₹/g) | 24-Carat (₹/g) |
|---|---|---|
| Delhi | ₹8,930 | ₹9,742 |
| Mumbai | ₹8,915 | ₹9,730 |
| Chennai | ₹8,930 | ₹9,742 |
| Kolkata | ₹8,920 | ₹9,735 |
| Bengaluru | ₹8,925 | ₹9,738 |
Prices are approximate and may vary
slightly.
Conclusion: Gold Still Has a Role, Just at the Right Time
While gold prices have fallen,
the story isn’t just about decline—it's about opportunity. For Indian
households that value gold both as a cultural and financial asset, this price
correction is a moment worth considering. Whether you're buying for a
wedding or looking to hedge against future volatility, today's dip offers a better
deal than just a few weeks ago.
Just remember: keep an eye on global
trends, inflation numbers, and central bank cues. Because in the world of gold,
what goes down often shines brighter again.
