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Gold Prices See Major Correction Down 23 Percent From January High
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CNBC Awaaz•06-10-2026, 16:56
Gold Prices See Major Correction Down 23 Percent From January High
- •Gold prices in the international market have dropped by about 22 to 23 percent compared to their record levels in January.
- •On MCX, the December gold contract closed at around 1.49 lakh rupees per 10 grams on October 5.
- •Global factors like US interest rate expectations, a strong dollar, and high bond yields are driving the recent price correction.
- •Buyers needing gold for Diwali or weddings should purchase according to immediate requirements rather than trying to time the absolute bottom.
- •Investors looking to park funds should consider alternatives like Gold ETFs to avoid making charges and ease transactions.
Key Questions Answered
Global factors such as expectations surrounding US interest rates, a strong US dollar, and high Treasury bond yields have placed downward pressure on gold prices, which dropped about 22-23 percent from their January peak.
If you need gold immediately for wedding jewelry or Diwali requirements, you can purchase according to your needs. However, experts advise against investing a large lump sum all at once solely hoping for absolute lowest prices, as market volatility persists.
When investing through Gold ETFs, buyers do not have to pay the making charges that are typically added to physical jewelry. Additionally, buying and selling gold investments through ETFs is relatively easier and helps avoid store price discrepancies.
