By News Desk 
On April 23, gold experienced a significant drop, with prices falling by 1-2 percent globally and a noticeable decrease in domestic gold futures as well. This decline is largely attributed to a recent statement by US President Donald Trump, in which he appeared to back down from his threat to remove Federal Reserve Chairman Jerome Powell. Furthermore, his expression of optimism regarding a potential tariff agreement with China also contributed to the downward pressure on gold prices.
Gold Prices Drop Significantly in Global and Indian Markets
On the international front, spot gold saw a decrease of 0.7 percent, falling to $3,357.11 per ounce. Similarly, US gold futures dropped by 1.5 percent, reaching $3,366.80 per ounce. In India, the downturn was also felt strongly. On the MCX commodity exchange, gold futures traded at ₹95,960 per 10 grams during morning hours, marking a decline of ₹1,398 or 1.44 percent. Experts suggest that profit booking was a key factor behind this fall, as many investors took the opportunity to sell their positions after gold’s previous upward trend.
Gold Hits New Record, Experts Divided on Future Price Trends
Just a day earlier, gold had reached a new record high on April 22, hitting $3,500 per ounce in the international market. This surge had led many investors to speculate about the future trajectory of gold prices. Financial experts remain divided on the outlook for the precious metal.
While some analysts, like those at JP Morgan, predict that gold’s upward trend will continue, with prices expected to cross $4,000 per ounce by next year, other analysts anticipate a possible short-term correction. Manav Modi, a senior analyst at Motilal Oswal, noted that after such a significant rise in gold prices, it’s likely that some profit booking will occur, leading to temporary declines.
Expert Advice for Gold Investors
Financial experts strongly recommend that gold should be a part of every investor’s portfolio, especially if it’s not already included. Ideally, gold should make up about 10-15 percent of your overall investment portfolio. Retail investors are advised not to focus too much on short-term fluctuations in gold prices but to consider it as a long-term investment. Historically, gold has delivered solid returns over extended periods, making it a reliable asset for those seeking stability.
How Should You Invest in Gold?
For those looking to invest in gold, there are several methods to consider. One option is to invest in gold ETFs (Exchange-Traded Funds) or mutual funds that offer gold-based schemes. Another practical approach is to invest a fixed amount in gold on a regular basis through SIP (Systematic Investment Plan). This strategy helps smooth out the volatility of gold prices and allows investors to accumulate gold steadily over time.
Experts suggest diversifying investment portfolios to include a mix of equity, debt, and gold. This balanced approach helps mitigate risks and provides a more stable financial future.
In conclusion, while gold has experienced a sharp decline recently, experts remain optimistic about its long-term prospects. By adopting a strategic, diversified investment approach, investors can weather short-term fluctuations and potentially benefit from gold’s continued growth.