The Gold rate is come down, those who want to invest, then do it now. The main reason for this falling is CHINA China usually invest in Gold, but suddenly they start selling the gold and started investing in Land. So real estate rate is gone up. Gold is coming down... There are other factors also for this gold rate fall...check out the below mentioned link for more details Gold price falling? Why it’s still okay to buy the metal | Firstpost
Not just China, it is hit after central banks hints. Central banks across the world have indicated that they might ease out on currency printing. But I do not think they will hold out. QE will go on at US. Japan has already got green signal to inflate. Europe in still in dumps, outside of Germany which need the weaker Euro. US markets are at record highs. Bonds are starting to weaken. Money is getting out of gold now. Weak hands probably get out first. China also has the new year week recently. India's wedding period is just ending. Gold is in correction. It might go lower, not too much from here. I got in early, not doing so good now 5% down from where I bought. Will look to add if this price holds out. Long term I feel good. Short term there might be some bumps.
By buying Gold we are indirectly causing problems to the nation. This is how it works India does not buy Gold, it imports bulk of its requirement. This amounts to close to $6bn/ month. India's Export-Imports is close to $20bn/ month. Now more we buy gold, more $ is required and the Rupee's value will drop down more. When Rupee's value drops down our cost of importing for essential things like say crude oil (from which petrol, diesel etc... are made) goes up, so petrol prices goes up, inflation i.e price increases will eventually lead to slow down in GDP. While Gold imports is not a single reason...as of now it is causing lot of problems to our economy!
At the MCX, Gold futures, for the April 2013 contract, are trading at Rs 29,349per 10 gram, down by 0.47 per cent, after opening at Rs 29,470, against a previous close of Rs 29,489. It touched an intra-day low of Rs 29,325.
Until our Rupee become stronger against Dollar, the Gold prices in INDIA is not going to fall sharply. If Indian Rupee was 45 - 47 by now, the gold might be aroung 24k per 10 grams. But the Rupee is still going to be weakening due to high Inflation and low GDP in further time. So Don't expect gold price to drop more in near.