Gold Price MCX: Forget 1 lakh... Gold price may come down to 56000, expert made a big revelation:

News Topical, Digital Desk : Gold Price MCX: Gold prices crossed its all-time high of Rs 1 lakh per 10 grams in the month of April. However, there was a slight decline in gold after that, but this decline is not so much that gold can be called cheap.

Talking about Tuesday, May 6, today also the volatility against the dollar and the increased spot demand in the market has pushed up the price of gold. Today gold was trading at Rs 95,865 per 10 grams on the MCX Gold Index.

Who said the price of gold could fall by 40%?

Whereas, if we talk about the last one year, gold has given a tremendous return of 30 percent, while its average annual return since 2001 has been around 15 percent. Now in such a situation, analyst John Mills of US research firm Morningstar says that gold prices may fall by up to 40 percent in the coming few years. Let's know why experts are saying this.

Can the price of gold really come down to 56000?

Analyst John Mills of the US research firm Morningstar says that gold prices may fall by 40 percent in the coming years. If this happens, then gold in India can fall directly from Rs 1 lakh to Rs 56,000 per 10 grams.

The major reasons behind this are being given. Among them, the first reason is the tremendous increase in supply. Gold mining companies around the world have made profits and are now increasing production. In the second quarter of 2024, mining profits reached $ 950 per ounce and according to the data so far, global gold reserves have increased by 9 percent to 2.16 lakh tonnes.

The second major reason is the decrease in demand. According to the report of the World Gold Council, central banks around the world are no longer in the mood to buy more gold. In the survey, 71 percent of the banks have said that they will either reduce gold purchases or maintain the current level.

The third major reason is the "peak" situation in the market. Mergers and acquisitions (M&A) in the gold sector have increased by 32 percent in 2024. This indicates that companies believe that gold prices have reached their highest level.