Introduction
Gold prices in India have taken a sharp turn downwards, extending a multi-day losing streak. The yellow metal, which recently touched record highs, is now undergoing a correction that has caught the attention of both investors and jewelry buyers. The big question is: what’s driving this fall, and what might happen next?
Current Price Levels
The latest figures from the market show:
- 24-carat gold at ₹10,135 per gram, down ₹5 from the prior session.
- 22-carat gold at ₹9,290 per gram, also lower by ₹5.
- 18-carat gold at ₹7,601 per gram, a decline of ₹4.
These prices are largely consistent across major cities such as Mumbai, Chennai, Hyderabad, and Bangalore, with only slight variations in other regions.
In the past four days, 24-carat gold prices have fallen by ₹19,100 per 100 grams – a drop of ₹1,910 per 10 grams.
Key Factors Behind the Drop
1. Profit Booking After Record Highs
Gold futures on MCX had recently surged to ₹1,02,191 per 10 grams. The subsequent fall of about ₹1,500 per 10 grams reflects a wave of profit-taking by traders after the rally.
2. Cooling Global Tensions
Reduced expectations of immediate tariff shocks and easing U.S.–China trade concerns have softened safe-haven demand. This comes alongside slightly lower U.S. inflation readings, which fueled hopes of a Federal Reserve rate cut but weren’t enough to sustain the rally.
3. Domestic Currency & Dollar Strength
A stronger U.S. dollar and rupee fluctuations have added to price pressure, with currency market volatility influencing import costs for gold in India.
City-Wise Snapshot
| City | 24K Gold (per gram) | 22K Gold (per gram) |
| Mumbai | ₹10,135 | ₹9,290 |
| Chennai | ₹10,135 | ₹9,290 |
| Hyderabad | ₹10,135 | ₹9,290 |
| Bangalore | ₹10,135 | ₹9,290 |
| Delhi | ~₹10,150 | ~₹9,305 |
Outlook for Gold Prices
- Potential Stabilization – Analysts expect gold to consolidate between ₹99,800 and ₹1,01,200 per 10 grams on MCX after its rapid climb.
- Global Cues in Focus – U.S. economic data, Federal Reserve decisions, and geopolitical developments will continue to shape price movement.
- Support Near ₹1 Lakh Mark – The modest rebound of ₹185 per 10 grams during the session suggests strong buying interest near this key level.
Final Thoughts
This latest dip in gold prices appears to be a healthy correction rather than a long-term decline. For long-term investors, these lower levels can present opportunities, while short-term traders will be closely tracking global market signals. Whether you’re buying bullion for investment or jewelry for an upcoming occasion, now could be the time to plan your purchases strategically.
TL;DR
Gold prices in India have dropped for the fourth straight day, with 24K gold at ₹10,135/g and 22K at ₹9,290/g. The fall is mainly due to profit booking after record highs, easing global tensions, and currency fluctuations. Analysts expect prices to stabilize near ₹1 lakh per 10g, making this a potential buying window for long-term investors.
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Frequently Asked Questions (FAQs)
Is this a good time to invest in gold?
Many analysts see the current dip as a healthy correction, offering potential buying opportunities for long-term investors, especially if prices stabilize near ₹1 lakh per 10g.
What factors should I watch to predict gold price movements?
Key factors include global economic data, U.S. Federal Reserve interest rate decisions, geopolitical events, currency exchange rates, and demand during festive seasons in India.
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