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Will 10 grams of gold be cheaper till Diwali? Know where yellow metal is headed, estimated prices

Gold is getting cheaper. The price of gold remains around Rs 50,000 (Gold Price), however, by the month of September, gold became a lot cheaper and dropped Rs 5684 from its record high. But it is important to know how much more the value of gold will fall in the coming days? Is there a possibility of further price cuts? What will be the price of 10-gram gold till Diwali? 

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Gold is getting cheaper. The price of gold remains around Rs 50,000 (Gold Price), however, by the month of September, gold became a lot cheaper and dropped Rs 5684 from its record high. But it is important to know how much more the value of gold will fall in the coming days? Is there a possibility of further price cuts? What will be the price of 10-gram gold till Diwali? 

Prices of Gold are falling for a short time

Due to the coronavirus pandemic, the stock market around the world saw a tremendous decline, however, now there is a steady turnover in the markets. A slow recovery is slowly been observed in the stock as well as the currency market. However, there have been sharp fluctuations in gold prices. In the bullion market, gold became cheaper by Rs 5684 per 10 grams till September 30 from its all-time high whereas silver also become cheaper by Rs 1,434 from its peak, Zee Business reported. 

Fluctuations will continue till Diwali 

According to Navneet Damani, Commodity Vice President of Motilal Oswal Financial Services said that "if you feel that gold will be cheaper or will come to the previous price level, then the idea may be wrong". 

He added, "If you see the movement of gold along with the pace of the stock market, then you will make a mistake. The price of gold has fallen from a height in the range of Rs 50,000, while silver is in the range of Rs 60,000. In the coming times, these fluctuations may continue. Until Diwali, there is no possibility of any major rise or fall in gold prices. Even on Diwali, gold can remain in the range of 50000-52000 per 10 grams." 

Gold became cheaper because the rupee grew stronger in the market 

According to some experts, the Stimulus package has definitely boosted the stock markets. The reason for the fall in gold prices is due to the strength of the rupee in the last two months. The rupee is currently in the range of 73-74 rupees per dollar. If the dollar increases, then, in the long run, the price of gold will increase more rapidly. By next year, gold can reach 60 to 70 thousand rupees per ten grams.

There will be a sudden boom

On August 7, 2020, the price of gold had reached an all-time high of 56,254 in the market while silver touched a price of Rs 76,008 per kg on the same day. The price of gold depends on many factors, so it is only speculated that gold can be cheaper. This estimate can also be proved wrong. Now as we enter the unlock phase after the lockdown and all the countries engaging in strengthening the economy, experts believe that by next year, with the strengthening of the dollar, the price of gold may suddenly increase as well. 

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