Introduction: Gold prices have been soaring unexpectedly in recent weeks, but experts are now predicting a major correction. According to Kunal Shah, Head of Commodities and Currency Research at Nirmal Bang, gold prices could see a sharp decline of $100-$250 per ounce in the next 10 to 30 days.
Market Overview: Despite the rally, analysts believe that gold’s bullish trend is nearing exhaustion. Shah emphasizes that this is the right time for investors to book profits, as the factors driving gold’s surge—such as expectations of interest rate cuts and central bank purchases—have already been factored into the price.
Why Is a Gold Price Drop Expected?
Weak Physical Demand: The demand for physical gold has started to decline.
Overbought Market: Many investors have jumped into gold, making it an overcrowded trade.
Premature Achievement of Year-End Targets: Gold has already reached price levels that were projected for the end of 2025, which is unusual.
Expert Insights: Kunal Shah strongly advises investors to shift their focus from gold to silver, which has been in a supply deficit for the past four years. According to him, silver has the potential to yield 10-15% returns over the next six to seven months.
Future Outlook: While the recent profit-taking in gold was triggered by changes in U.S. tariff policies and inventory adjustments, the fundamental outlook for metals remains bullish in 2025. Investors should expect a 10% rise in silver and other industrial metals in the coming months.
Investment Strategy:
Book profits in gold now.
Shift investments towards silver and industrial metals.
Adjust portfolios wisely to maximize returns in the changing market scenario.
With global uncertainties persisting, a strategic shift in investments can help investors navigate the fluctuations in the gold and silver markets effectively.
