Gold prices drop 21 percent from record high as investors weigh entry points

Domestic gold prices have fallen nearly 21 percent from their record high of ₹1,80,779 per 10 grams to around ₹1,42,364. Weaker spot demand drove the latest selloff, with gold futures on the MCX declining 1.51 percent on Friday, November 6, to ₹1,41,917 per 10 grams. Silver prices have witnessed an even sharper decline, falling from a peak of around ₹4 lakh per kg in February to nearly ₹1,70,600.

Market Views

Motilal Oswal reports that domestic gold prices have climbed from about ₹30,000 in 2016 to nearly ₹1.50 lakh in 2026. The brokerage suggests that US midterm elections, inflation, and monetary policy may add volatility, while maintaining a buy-on-dips stance with a short-term target of ₹1,48,000. Meanwhile, Kedia Advisory notes that international gold prices corrected 29.7 percent from a January 2026 peak of $5,598 per ounce to $3,937. Central banks continue to support gold, with purchases reaching 321 tonnes in the third quarter of 2026, up 42 percent year-on-year. Kedia Advisory expects gold to trade in a broad range of ₹1,35,000 to ₹1,48,600 over the next three months, backed by support levels starting near ₹1,37,468.

Context

Gold is traditionally viewed as a safe-haven asset during times of economic uncertainty and inflation. Central banks often accumulate gold reserves to diversify their holdings and protect against currency fluctuations.