Gold Prices in India: Waiting for the Bottom May Not Be Worth It

Gold prices in India have been hovering near Rs 1,43,000 per 10 grams, sparking debate among investors on whether to buy now or wait for a potential fall.

Experts warn that waiting for gold to crash to Rs 1 lakh is not a viable strategy, as it is unlikely to happen anytime soon. Renisha Chainani, Head of Research at Augmont, says that central bank buying continues to support the price floor, making a total collapse in gold prices very unlikely.

Chainani suggests that short-term dips of 5-15 percent are normal and healthy, but not a crash. She advises investors to stay diversified and invest gradually rather than timing the bottom.

Nirpendra Yadav, Senior Research Analyst at Bonanza, agrees that a correction in gold prices is possible, but notes that it would require significant macroeconomic, monetary policy, or geopolitical developments, such as a sustained easing of geopolitical tensions or higher interest rates.

Yadav warns that investors with a shorter investment horizon should be prepared for elevated volatility after gold's strong rally and manage their positions accordingly.