The Daily PulseBusiness
Gold Prices Drop Sharply Ahead of Festive Season
Reported by Ananya Das (Senior Writer) · Livemint - Markets ·
Reported by one source so far
Photo: Wikimedia CommonsGold futures on the Multi Commodity Exchange have dropped more than ₹38,600 from their record high of ₹1,80,779 per 10 grams set on January 29, 2026. Prices settled at ₹1,42,024 on Friday, marking a 21.43% decline from the peak and a 4.7% drop for the month of October.
Market Pressures
Global markets saw sharp volatility this week due to rising crude oil prices, US inflation worries, and tensions in the Middle East. Internationally, gold fell about 4% in its largest weekly drop since June, falling below $4,000 per ounce for the first time since mid-July. Silver also dropped to trade near $54 per ounce. Experts note that drops in US tech stocks led to margin calls, forcing investors to sell precious metals to cover debts.
Buyer Impact
Lower prices have boosted physical gold sales during the Dussehra festival in India, though jewelry demand in China remains low. Ponmudi R, CEO of Enrich Money, advises buyers to purchase gold gradually and watch the ₹1,40,000 support level. Aamir Makda, an analyst at Choice Broking, expects prices to stay weak or range-bound near Diwali 2026 due to strong bond yields and a strong US dollar, but states that long-term support remains due to central bank buying.
Context
Gold is traditionally seen as a safe place to put money during times of global tension and inflation, and Indian buyers often purchase more gold during festivals like Dussehra and Diwali. However, global economic factors like US interest rates and currency values heavily influence domestic prices.
ExplainerWhy this matters
What Happened
Gold prices have dropped significantly from record highs due to a mix of global economic pressures, a stronger US dollar, and forced selling by investors covering losses in other markets.
Why It Matters
Precious metal prices affect both everyday consumers looking to buy jewelry for festivals and weddings and institutional investors managing large portfolios. Understanding the drivers behind these shifts helps buyers decide whether to purchase now or wait.
What Happens Next
Analysts expect gold to remain in a consolidation phase near the festive season. Buyers are advised to watch the key support level of ₹1,40,000 and use a gradual purchasing strategy rather than buying all at once.
