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Gold Price Plunges: Will it Fall Further Before Diwali? Market Insights Revealed
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News18•23-09-2026, 11:24
Gold Price Plunges: Will it Fall Further Before Diwali? Market Insights Revealed
- •Gold, after hitting a monthly high of $4,658 on August 25, fell by 7.11% to $4,327 by September 22.
- •Geopolitical tensions, a strengthening US dollar, and investor profit-taking are key factors driving the gold price decline.
- •Indian gold ETF investments surged by 67% to ₹26 billion, while digital gold purchases reached ₹25 billion monthly.
- •Despite festive demand, consumers are exchanging old gold for new, reducing the need for fresh imports.
- •Experts predict gold will trade between $4,250 and $4,450; a break above key resistance could push prices to $4,600-$4,700.
Key Questions Answered
Gold prices fell due to global market conditions, profit-taking from investors following rising US-Iran geopolitical tensions, a strengthening US dollar, and climbing crude oil futures and interest rates.
Investment purchases outperformed physical gold in India, with Indian gold ETF investments surging by 67% to reach ₹26 billion and digital gold purchases hitting a monthly milestone of ₹25 billion.
Experts note that if the domestic price of 10 grams of gold falls to ₹1.50 lakh, consumers are expected to resume buying for the festive and wedding season, while investors currently remain in a wait-and-watch mode.
