Market analysts were quite surprised by such a huge rise in gold prices and due to this rise in gold prices, a good rise was also seen in Gold Bees ETF.
But now for the past few days, there has been a decline in gold prices and analysts believe, this decline is being seen due to the Iran-Israel conflict.
So let us do a complete analysis of this fall in Gold ETF and try to know how much further the Gold ETF can fall.
What is Gold ETF?
We all know that gold can be traded in the commodities market only through futures and options, which becomes very risky, and we also need a huge amount.
If we invest in Gold ETF instead of investing directly in gold, we avoid the risk of futures and options. Gold ETF is bought like a share we can hold for a long time.
Gold ETF declining date
If we talk about the Gold ETF, it has grown very well in the last 30 days. But from April 16, 2024, it started consolidating and after seeing such a big fall in Gold, it seemed that it can now take a slight correction from here.
Our guess turned out to be correct because, on April 22, 2024, this rate fell by about 1.5%t. But right now it cannot be said with certainty whether this figure can also fall further from here or not.
What is the reason behind the fall of Gold ETF?
The following reasons could be behind the fall of Gold ETF.
- There was a huge rally in the Gold ETF in the last few days. It is possible that after such a huge rally, a little collection is coming in the Gold ETF.
- Due to the conflict between Iran and Israel, people fear that oil prices may rise, so they are withdrawing money from silver and gold and investing it in oil. Gold ETF only traces the real price of gold, so when the real price of gold falls, the price of the Gold ETF will fall.
- If you look at the Indian market compared to the global market, it is still stable. It is possible that instead of investing in gold, people are still investing in the Indian stock market. This could also be one of the main reasons for the fall of Gold ETF.
How much more can Gold ETF fall from here?
If you are thinking that the reason for the falling Gold ETF share price is a market crash, then let us tell you here that no market crash has come yet nor is it expected.
We are seeing this decline across the board as a market correction and in the coming time, gold may come down further by 2% to 3%.
This situation can happen not only with Gold ETF but also with Silver ETF. Because of the Iran-Israel conflict, investors are investing in oil instead of gold and silver.
But the decline in Gold ETF is not for long, the gold price will be higher in the coming time, and due to this, the price of gold ETF will also increase.
Is it the right time to buy Gold ETF?
No, this is not the right time to buy Gold Bees ETF because we are expecting that from here the Gold ETF may fall further by 2% to 3%.
At present, the price of Gold Bees ETF is running between 61 to 62 and if this price comes to 59 or 58 then you can again consider investing in it.
Conclusion
Due to the ongoing war between Iran and Israel, there is a decline in Gold ETF and we are estimating that this decline may come further.
We would advise you to refrain from making new investments in Gold Bees ETF for a few days.