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Gold Prices Drop 23% Since January: Buy Before Diwali or Wait?
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News18•07-10-2026, 08:50
Gold Prices Drop 23% Since January: Buy Before Diwali or Wait?
- •Gold prices have seen a significant drop of about 22 to 23 percent compared to the record highs reached in January.
- •In the domestic market, MCX gold prices for December delivery closed around Rs 1.49 lakh per 10 grams on October 5.
- •Global factors like US interest rate expectations, dollar strength, and bond yields are driving the downward pressure on gold prices.
- •Experts advise buying gold for Diwali or weddings strictly according to immediate needs rather than investing a large lump sum all at once.
- •Investors looking to park funds in gold can consider Gold ETFs to avoid making charges and enjoy easier buying and selling.
Key Questions Answered
Gold prices have dropped by about 22 to 23 percent compared to January's record high due to global factors like US interest rate expectations, the strength of the dollar, and high returns on US government bonds creating downward pressure.
Experts suggest that if you need gold for wedding jewelry or Diwali, you should buy according to your immediate requirement rather than waiting in hopes of finding the absolute lowest level. However, future price drops cannot be entirely ruled out, so large lump-sum investments should be approached cautiously.
Investing through Gold ETFs avoids the additional making charges that are required when purchasing physical jewelry, and it also makes buying and selling much easier.
