Why is gold becoming cheaper

Buy Gold Jewellery Set

For the last fifteen days or rather after Diwali, a sudden decline in the prices of gold has been seen. Between November 1 and November 14, gold prices have fallen by about Rs 6000 from their record level. It is noteworthy that when the government had reduced customs duty in the budget, gold prices had seen a decline for several consecutive days. Since then, gold had been rising continuously and reached 'all time high', but after Diwali, once again a significant decline is being seen in the prices of gold. Today we will talk about why gold prices are falling and where they are likely to remain in the future.

Why are prices falling?

The kind of decline seen in gold prices seems to indicate that gold is becoming cheaper due to the continuous strengthening of the US dollar. Although gold had started falling even before the US President's election results, but after Trump's victory, it is continuously falling. There is a fear that inflation will increase in America, due to which the US central bank, the Federal Reserve, may abandon the path of cutting interest rates. This may also lead to a fall in gold prices. On the other hand, due to the Ukraine war and Israel's ongoing conflict with the Gulf countries, the central banks of many countries were continuously purchasing gold to increase their gold reserves, but now they have stopped purchasing gold after purchasing all their needs. Due to this also the prices of gold have come down.

What is the current price?

At the beginning of November, gold was around Rs 78 thousand per ten grams, but as the days passed, it kept coming down. By November 14, 2024, the price of gold slipped to about Rs 73 thousand, that is, within just 14 to 15 days, a fall of more than five thousand rupees was seen in the prices. Apart from this, gold prices are also coming down in commodity exchange. According to a report, at one time in November, the price of fine gold had crossed Rs 81 thousand.

Buy this design of ear rings

Buy only after checking the purity

In view of the fall in the prices of gold, it may happen that in the pursuit of cheapness you forget to test the purity of gold and buy adulterated or fake gold. Gold prices have come down, so it is possible that you too may be planning to buy gold, hence while buying gold, do not ignore its purity. Every customer buys gold or its jewelery keeping in mind his pocket, hence some buy 24 carat gold and some buy 22 carat, 20 carat or 18 carat gold. But if you buy hallmarked gold jewelery then it is for 24 carat gold (999), for 23 carat (958), for 22 carat (916), for 21 carat (875), for 18 carat (750), for 14 carat it is written (583) and for carat (375).