Gold and silver prices, which had recently hit record highs, have been falling over the past few days. In the last four days alone, the price of gold has dropped by Rs 22,800 per sovereign, providing some relief to middle-class buyers. However, this decline is being described as one of the largest in history. Meanwhile, jewellery enthusiasts are left wondering whether gold prices will continue to fall or begin to rise. Let’s examine the latest predictions from investment bank JP Morgan.
Currently, the global price of gold per ounce has fallen from $5,500 to $4,700, and it is presently trading at $4,767. In just a few days, this represents a drop of over $700. In India, the price of one pound of gold yesterday stood at Rs 1,47,170. JP Morgan, however, forecasts that by the end of this year, the price of one ounce of gold could climb to $6,300. This implies a potential increase of around 32% from current levels. Based on these projections, the price of one ounce of gold in India could easily reach Rs 2 lakh. According to JP Morgan, the anticipated rise in gold prices is being driven by demand from central banks and investors.
The investment bank has also estimated that central banks could purchase around 800 tonnes of gold in 2026. Turning to silver, JP Morgan notes that the price of silver has risen from $80 per ounce since last December. However, the reasons for this increase are difficult to pinpoint and require caution. At one stage, the price of silver exceeded $120 per ounce, but it has now fallen back to around $80 and is currently trading near $81.
JP Morgan Chase & Co has further indicated that, since central banks are not purchasing silver as aggressively as gold, the gold-to-silver ratio could continue to rise in the coming weeks. They added, “Even though silver has seen a notable increase relative to gold, it may not be able to maintain all of its gains. For now, we see the average upper support level for silver at around $75 to $80 per ounce, which is higher than our previous expectations.”
Disclaimer: The information provided in this article is intended solely for readers’ understanding. Gold and silver prices are influenced by international developments, inflation, and central bank policies. Therefore, before investing in these metals, readers should consult a financial advisor and make informed decisions.