Gold prices have now become a hot topic in a manner never seen before. There are many reasons behind this. Just a few days ago, the price of 10 grams of gold in the country crossed a record level of ₹1.80 lakh and created a new record. From there, it has been falling continuously. Currently, the price of 10 grams of gold is hovering around ₹1.56 lakh. Uncertainty has been continuing in the stock market over the past few months. Shares across several sectors have been witnessing a sharp decline. During this period, even those who newly turned their attention towards investments have shown interest in buying gold. A report revealed that especially the youth are independently deciding to purchase gold and are investing in it with the funds available to them. Due to the real estate market remaining dull and the stock market witnessing a fall, more people focused on buying gold. This is also one of the reasons for the recent unexpected surge in prices. Reports say that apart from public purchases, several countries including India have made large-scale gold purchases to reduce dependence on the US dollar.
In this context, a sensational piece of news regarding gold prices has emerged. The news is that the price of 10 grams of gold may come down to ₹1 lakh in the coming days. If this actually happens, those who invested in gold at higher prices may have to bear heavy losses. However, for gold prices to fall below ₹1 lakh, several factors are involved. The most crucial factor among them is whether Russia changes its stance and becomes ready to resume trade in the US dollar. It is known that US President Donald Trump has been using various strategies to bring several countries worldwide in line with the US. He has also been making efforts to bring an end to the Russia–Ukraine war that has been continuing for the past few years. Experts estimate that if the war comes to a halt by June and Russia becomes ready to trade with the US in dollars, gold prices may decline globally.
There are reports that Russia has agreed to resume trading in dollars and is ready for a trade agreement with the United States. It is being said that this single factor could bring an end to the rally in gold prices. Media reports, citing an international document related to Russia, stated that Russia is ready for dollar-based trade. Russia’s decision could put brakes on the BRICS nations’ efforts toward de-dollarization by introducing an alternative currency to the dollar. It is known that BRICS includes India, Brazil, Russia, China, and South Africa. Experts say that BRICS nations have been purchasing gold in large quantities to counter the dollar and are considering using gold instead of the dollar in their trade settlements. If Russia shifts back to the US dollar, it could become a hurdle to de-dollarization and the rally in gold prices. As a result, there is a possibility of a sharp fall in gold prices, according to experts. Twenty percent of the world’s gold reserves are with BRICS countries. However, even if everything proceeds smoothly, it may take until 2027 for these developments to be implemented. It remains to be seen how many changes will occur in international conditions during this period. Most experts estimate that volatility in the gold market is likely to continue in the coming days.