On Wednesday, the price of gold fell to the level of $1,792 per troy ounce. It is expected that in the coming months, the quotes will move sideways. At the end of the year, the precious metal may face difficulties when inflationary pressure begins to weaken. The main obstacles for gold remain expectations of normalization of monetary policy, as well as a slowdown in the pace of asset repurchases by Central Banks. Rising government bond yields and changes in monetary policy may also prove to be significant obstacles to the growth of the precious metal. Analysts from Fitch Solutions expect some volatility in the coming months, but we are mostly neutral about the gold price in the short term. Compared to the same period last year, gold imports to India in August of this year almost doubled. This was due to high demand and the fact that low prices allowed jewelry manufacturers to increase purchases for the festive season. In August, India imported almost 121 tons of gold, compared with 63 tons for the same period last year in 2020. The price adjustment in the first half of August provided an excellent opportunity for jewelry manufacturers seeking to replenish their stocks for the upcoming holiday season. Imports in September may grow to more than 80 tons of gold compared to 12 tons for the same period last year, if prices remain stable ahead of the holiday season.
The forecast expects a further decline in gold to the levels of 1790, 1785 and 1780 dollars per ounce.