Recent Sharp Fall in Gold Prices
Gold prices in India have dropped about 7% recently due to a stronger US dollar and easing trade tensions. Despite the fall, the lower prices are seen as a good chance to buy gold. Experts expect prices to stay stable or rise slowly in the next few months.
MARKET NEWS
10/29/20251 min read
Significant concerns regarding the future of the precious metal in the Indian market have been raised by the recent steep drops in gold prices. Following a strong gain earlier in 2025, gold prices have had a drop of over 10-15% over the past week, returning to more realistic levels. According to experts, this adjustment is sound and offers opportunities for purchases, particularly as prices are influenced by global economic considerations.
Current Trends and Causes
A stronger US dollar, a reduction in geopolitical tensions, and anticipation of monetary easing by major central banks, especially the US Federal Reserve, have all contributed significantly to the decline in gold prices. Although some buying interest is still supported by the festive and wedding seasons, these factors have decreased the safe-haven attractiveness of gold, resulting in muted demand in India.
What's Next for Gold in India
Following this correction, analysts predict that gold prices will likely remain in the near future, with a potential for a gradual comeback. According to the forecast for the upcoming months, gold can have a modest upward trend driven by both domestic inflation tendencies and international economic developments. Prices are predicted to stay between Rs 11,700 and Rs 12,100 per 10 grams in October and November of 2025, with a gradual increase anticipated in the upcoming quarter.
Outlook and Investment Strategies
Since the long-term view is still favourable and some forecasters believe that prices might reach Rs 13 lakh per 10 grams by 2036 due to inflation and geopolitical tensions, experts advise buying gold on dips, particularly during times of temporary corrections. Investors are encouraged to exercise caution, keep an eye on global indicators, and view the present downturn as a chance to purchase with a medium- to long-term time horizon.
In conclusion, even though the recent fall caused a short-term drop, gold's overall trajectory in India seems stable, with the possibility of a strong recovery in the months to come, particularly if inflationary pressures increase and international tensions continue.