Wed Oct 08 00:30:00 UTC 2025: **Gold Market Braces for Potential Crash: Expert Warns Rally Unsustainable**

**New Delhi:** After months of soaring gold and silver prices, reaching near-record highs and fueling investor optimism, a leading market strategist is sounding the alarm. Amit Goel, Co-founder and Chief Global Strategist at PACE 360, which manages over $2.4 billion in assets, predicts a significant correction, or “crash,” in gold prices.

Goel argues that the current surge is unsustainable, with prices far exceeding their intrinsic value. He points to historical data, noting that similar rallies fueled by a weak dollar index have been followed by substantial declines.

While gold is currently trading around $4,000 per ounce internationally, and 24-carat gold in Delhi reached ₹1,22,540 per 10 grams on October 8th, Goel believes these levels are nearing a “mental limit” that typically precedes a major sell-off.

**How Low Could Prices Go?**

Goel forecasts a potential 30-35% drop in gold prices. Referencing past instances where gold prices plummeted by up to 45% after similar rallies (such as in 2007-08 and 2011), he suggests that gold in India could fall from ₹1,22,000 to ₹77,700 per 10 grams.

The outlook for silver is even more bearish, with a potential drop of at least 50% from ₹1,54,900 to ₹77,450 per kilogram. Goel attributes this to excessive speculation surrounding silver.

**When to Buy Back In**

Goel suggests that gold will become an attractive investment again if prices fall to the $2,600-$2,700 per ounce range. However, he remains less optimistic about silver due to the potential for a global recession to weaken industrial demand for the metal. He expects a deep recession led by the US in the next 2–3 years. This could negatively impact demand from sectors like photovoltaics, semiconductors, and electric vehicles, leading to a decrease in silver demand.

**Short-Term Gains, Long-Term Pain?**

While Goel acknowledges the possibility of short-term rallies in gold and silver, he maintains that these will be fleeting. He advises investors to exercise caution and wait for the expected correction before making new investments.

**The bottom line:** The current gold and silver market rally may be a bubble waiting to burst. Investors should proceed with caution and consider waiting for a price correction before making any major investments.

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