Gold Price Outlook: Economist Anand Srinivasan’s Key View
Gold prices, which were fluctuating earlier, have now stabilized. However, many investors are hoping for a slight drop. Renowned economist Anand Srinivasan has shared important insights on what could trigger a fall in gold prices.
According to him, if Kevin Wash significantly reduces the U.S. balance sheet, it could create panic in the stock market, push interest rates higher, and strengthen the dollar. This scenario could lead to a sharp fall in gold and silver prices.
He stated that if gold, currently trading around $5,090 per ounce, drops to $4,000, it would mean a decline of nearly 21%. If the Indian rupee remains stable, this could bring gold prices in India down to around ₹12,500 per gram.
In another video, he noted that while Kevin Wash has hinted at possible interest rate cuts due to the AI-driven economic boom, reducing both interest rates and money supply at the same time is contradictory. If the money supply is reduced, the dollar may strengthen, leading to a further drop in gold prices.
However, market sentiment suggests that such major changes may not happen immediately, especially while political uncertainty continues in the U.S.
