Gold will cost you less, prices will fall further in New Year

New Delhi: If you are planning to invest in gold after the fall in prices, then here is a news for you. The gold prices are likely to fall further in 2017. Global trends and effect of note ban is likely to bring down gold prices further.

In recent past gold has lost about  28% of its value because of falling  prices.Experts believe that the prices could fall further in 2017.

Gold prices rose for a brief period after note ban. This was primarily because of rush for gold for converting black money. Over the last few days, a decling trend is being observed.  Currently the prices are at their 11-month low at Rs 27,550/10 grams. This trend is likely to continue in 2017 with government planning a crackdown on jewellers and gold hoarders. 

There has been a correction in spot prices of gold, globally, from $1,337 on November 9 to $1,230 per ounce at present. In India, MCX gold futures have fallen from Rs 31,400 per 10 gm to Rs 29,300 during the period.

The US is likely to increase infrastructure spending, which not only boost economic growth but make dollar stronger. A strong dollar implies weak gold, thus the gold prices globall are also to come down.

Both, global and domestic, trends indicate fall in gold prices. So, hang on for a while before jumping on the gold rush bandwagon.  (News24Bureau)