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Gold Prices Drop 23% From Peak: Is Diwali The Right Time To Buy?
M
Moneycontrol•06-10-2026, 16:31
Gold Prices Drop 23% From Peak: Is Diwali The Right Time To Buy?
- •International spot gold fell from a record $5,419 per ounce in January to just above $4,155 by October 5, while MCX gold dropped from a peak of Rs 2,47,917 to Rs 1,49,270 per 10 grams.
- •Analysts suggest a staggered buying approach in 3 to 4 tranches rather than lump-sum investments, advising against trying to time the exact market bottom ahead of Diwali.
- •Jewellery sales volumes are expected to remain below last year's levels as consumers turn more selective, favoring lightweight contemporary designs within budgets of Rs 1.5 lakh to 3 lakhs.
- •Gold ETFs are recommended for investment purposes to avoid high making charges, while festive and wedding buyers can purchase according to immediate needs.
- •Experts warn that gold may experience further volatility and downside before stabilizing, with key support anticipated around $3,950 per ounce.
Key Questions Answered
The decline was primarily driven by higher US Treasury yields, a firmer dollar, and changing geopolitical expectations, while rupee movements also impacted domestic prices.
Analysts advise avoiding lump-sum purchases and instead opting for staggered buying over several weeks in three to four tranches, while investors can use gold ETFs to bypass making charges.
Industry players expect overall sales volumes to remain below last year's levels as consumers turn more cautious, though peak festive periods could see occasional 15 to 20 percent spikes with average ticket sizes ranging between Rs 1.5 lakh and 3 lakhs.
