Gold Price Prediction: Gold prices have hit all-time highs, which is great news for investors but tough on consumers. Currently, 24-carat gold is selling for about Rs 93,000 per 10 grams in India and over $3,100 per ounce worldwide.However, John Mills, an analyst from Morningstar in the US, is predicting a significant drop of 38% in the next few years. If his forecast holds true, we could see gold prices fall to around Rs 55,000 per 10 grams in India and $1,820 per ounce globally.The recent rise in gold prices was fueled by economic uncertainty, worries about inflation, and geopolitical issues. Many investors turned to gold as a safe haven during the trade disputes that began under former US President Donald Trump .However, several factors now indicate a possible downturn in prices:Increased Supply: Gold production has surged, with mining profits hitting $950 per ounce in the second quarter of 2024. Global reserves have increased by 9%, reaching 2,16,265 tonnes. Australia has ramped up its production, and the supply of recycled gold is also on the rise.Declining Demand: Central banks, which purchased 1,045 tonnes of gold last year, may start to cut back on their acquisitions. A survey by the World Gold Council found that 71% of central banks are planning to either reduce or maintain their gold holdings.Market Saturation: The gold sector has seen a 32% increase in mergers and acquisitions in 2024, signaling a peak in the market. Plus, a rise in gold-backed ETFs indicates a trend that often precedes price corrections.Dr. Renisha Chainani, Head–Research, Augmont believes that the gold uptrend is likely to continue for the next one to two months. The ongoing trade war, particularly retaliatory tariffs from China, is negatively impacting the U.S. economy.This has led to deteriorating growth numbers and rising inflation, setting the stage for potential rate cuts by the Federal Reserve. Expectations of three to four rate cuts this year have fueled a bullish sentiment for gold, with prices projected to reach $3,250 to $3,300 per ounce in the short term.According to Sugandha Sachdeva, Founder SS WealthStreet, Gold's recent rally has encountered headwinds, with selling pressure emerging despite ongoing global trade disruptions.President Trump's decision to exclude gold and silver from tariffs has lessened supply-side anxieties which reflected in rising Comex inventories in recent months amid concerns of higher import tariffs.Simultaneously, retail demand has softened following a substantial 19% price rally in the previous quarter. Gold's inability to sustain prices above the $3,120 per ounce resistance level in international markets and Rs 88800 per 10gm mark in the domestic markets suggests a potential pullback, with domestic prices potentially falling to Rs 87,000 crucial support initially or even Rs 84,000 per kg mark in coming days.A broader market sell-off has prompted some investors to reduce their gold exposure. Moreover, a strong US non-farm payrolls report for March has tempered expectations for aggressive Federal Reserve rate cuts this year. Concerns that rising tariff-driven inflation may further discourage the Fed from easing, is adding to further downward pressure on gold. In the long term, Chainani anticipates profit booking in gold once it reaches the short-term target levels. If economic conditions improve, gold prices might correct to around $2,800 per ounce. However, if inflation remains high and economic uncertainties persist, gold could retain its strength.A significant drop in gold prices could have repercussions for both investors and consumers. Those who bought gold at higher prices might face losses, while new buyers could take advantage of lower prices. Analysts recommend keeping an eye on market trends and central bank policies before making any investment moves.As the global economy stabilizes and supply ramps up, we might be looking at a sharp correction in gold prices in the near future.Disclaimer: The views expressed in this article are purely informational and Republic Media Network does not vouch for, promote or endorse any opinions stated by any third party. Stock market and Mutual Fund investments are subject to market risks and readers are advised to seek expert advice before investing in stocks, derivatives and Mutual Funds