Gold prices are touching the sky these days. Meanwhile, it is being estimated that by Diwali, the rate of 24 carat gold can also cross ₹ 1.25 lakh per 10 grams. But in such a situation, the question arises whether this will happen really?

If you are also thinking of investing in gold, then this news is for you, because there are some reasons that can prevent gold prices from rising. At present, the price of 24 carat gold is close to Rs 109,700 per 10 grams. Let's know what things can prevent the price of gold from growing in the coming time.

1. If the dollar strengthens, gold will not shine

So far, the dollar has weakened slightly, due to which the prices of gold have increased, but if the dollar becomes strong again, the gold shine may fade. When the dollar is strong, foreign investors consider it better to withdraw money from gold and invest in dollars. This reduces the demand for gold in the global market and prices start falling.

2. If America did not reduce interest rates

The market hopes that the US Federal Reserve will cut interest rates. But if the fed postponed the decision or cut the rates very low, then gold prices may be shocked. Low interest rates mean low returns in bonds or saving to investors, so they run towards gold, but if these rates are not reduced, then the demand for gold will not increase as it is now expected.

3. If the rupee became stronger in India

Gold prices also depend on the condition of a large amount of rupees in India. If the rupee strengthened against the dollar, then imports will be cheaper and gold will also be cheaper. At present, the rupee is weak, but if the rupee improves by Diwali, then the prices of gold can remain the same or even fall a little.

4. If stress will be reduced at global level

There is an atmosphere of tension between Israel-Gaza and Russia-Ukraine in the Middle East. These situations are making gold a safe investment. But if this tension is over or lighter, then investors will not be afraid. Because as soon as people move away from safe option, the demand for gold decreases and prices also start coming down.

5. If there was not much increase in demand

Diwali and wedding season means heavy demand for gold in India. But this time if people reduce the purchase in the affair of profits or the budget is tight, then the market hopes may be shocked. Because if the demand is less than expected, the supply will increase and prices will stop or may also come down.