Will gold price fall to Rs 55,000 per 10 grams?

Hyderabad: Are gold prices headed for a massive drop? Speculation about a steep fall in gold prices is trending across social media platforms, causing unease among investors and buyers in India.

Claims suggest that gold could fall to around Rs 55,000 per 10 grams in India and globally from $3,080 to $1,820 per ounce. These predictions have stirred widespread confusion and concern, particularly because gold holds deep financial and cultural significance in India—as both an ornament and a trusted form of savings.

Gold prices at an all-time high

Currently, gold prices are at an all-time high.

In India, 24-carat gold is nearing Rs 90,000 per 10 grams, while globally, it is trading above $3,100 per ounce. Despite this surge, US-based strategist John Mills recently forecasted a dramatic drop, predicting prices could plunge by as much as 40 per cent over the coming years.

Following his statement, social media platforms were flooded with reels and videos echoing the possibility of a gold price crash. Some jewellery shop owners took to Instagram, urging the public not to panic and to consult financial experts before making investment decisions.

Financial institutions are optimistic about gold prices

However, not everyone agrees with these bearish predictions. Major financial institutions have expressed a more optimistic outlook. Bank of America expects gold prices to reach $3,500 per ounce within two years, while Goldman Sachs projects the metal to end the year at around $3,300 per ounce.

Speaking to NewsMeter, Satish Agarwal, an analyst from Kundan Jewellers and Exporters, dismissed the viral forecasts as speculative. “No one can accurately predict a steep fall in gold prices. In fact, there are stronger indications that prices might continue to rise. These panic-driven predictions seem more like fearmongering than facts,” he said.

Agarwal emphasised that no credible sources in investment banking or venture capital have backed the idea of such a sharp decline.

Analysts acknowledge that certain economic factors—like a strengthening US dollar, potential interest rate hikes and weakening demand—could put downward pressure on gold prices in the latter half of 2025. However, ongoing geopolitical tensions and economic uncertainties could also sustain or push prices higher.

While social media is buzzing with fear of a gold price crash, experts suggest taking a cautious and informed approach rather than reacting to speculation.