Does gold price go down ever? From the past 6 months, it is increasing and if not that, it has been on a higher side.
The honest answer is yes, it does. Gold prices may look like they always climb in the long run, but global and local factors often cause short-term price drops.
When I track gold rates, I notice they fluctuate daily. This movement depends on demand, currency value, and international market shifts. For example, when the US dollar strengthens, gold prices usually drop in India.
Here are a few triggers I’ve personally seen that affect gold prices:
- Global Events: Wars, economic uncertainty, or policy changes push investors towards or away from gold.
- Interest Rates: When central banks increase interest rates, fixed-income assets become more attractive. Gold, which doesn’t pay interest, can lose appeal.
- Supply and Demand: Jewellery demand during festivals can spike prices, while prices drop in off-season months.
- Inflation Trends: When inflation is high, gold prices usually rise. When inflation is low, gold prices often fall.
From my perspective, while gold generally holds long-term value, short-term dips are normal. History shows it bounces back over time. That’s why experienced investors treat dips as buying opportunities rather than red flags.