# Gold Prices Drop 26% from Record High

> Indian households shift to coins and ETFs as gold prices cool after record surge.
- Title: Gold Prices Drop 26% from Record High · mint | Shortify
- Summary: Indian households shift to coins and ETFs as gold prices cool after record surge. Indian buyers are opting for lighter jewellery, coins, bars and gold ETFs…
- Keywords: gold prices, dussehra, diwali, indian households, gold etfs, physical gold demand, federal reserve, treasury yields, us dollar, commodities, news, india
- Source: mint — https://livemint.com/market/commodities/gold-price-outlook-yellow-metal-prices-cool-26-from-record-high-what-indian-buyers-are-doing-this-dussehra-diwali-11792472642371.html
- Author: Pranati Deva
- Published: 2026-10-20T05:57:44+00:00
- Read time: 1 min
- Topics: gold prices, dussehra, diwali, indian households, gold etfs, physical gold demand, federal reserve, treasury yields, us dollar, commodities, news, india
## Gold Prices Cool 26% from Record High
Gold prices dropped 26% from record highs after a sharp correction in January 2026.
## Festive Season Buying Shifts
Indian households are adapting to high gold prices by buying lighter jewellery or choosing coins, bars and gold ETFs.
## Gold Recovery Supported by Weaker Dollar
Gold prices edged higher on Tuesday, supported by a softer US dollar and lower Treasury yields.
## Federal Reserve Rate Expectations
Traders priced in an 82% probability of unchanged interest rates at the Federal Reserve's October 27, 28 meeting.
## Gold ETFs See Rising Inflows
Gold ETFs attracted net inflows of ₹ 2,596.70 crore in August, up from ₹ 1,559 crore in July.
## Physical Gold Demand Weakens
India's gold imports fell to $2.3 billion in August, down 45% from July and 58% year-on-year.
## Rajeev Sharan on Buying Trends
Rajeev Sharan noted 24-karat gold trading near ₹ 1.48 lakh per 10 grams as India entered festive season.
## Gold Price Outlook
Analysts expect festive-season support but caution that rate hikes could pressure gold prices.
## Vikas Gupta on Future Trends
Vikas Gupta expects Indian gold prices to see a modest festive-season rise before stabilising.
## Key Factors Affecting Gold
Softer crude prices and lower Treasury yields support gold, while oil spikes or hawkish Fed signals could reverse recovery.
## Key takeaway

Indian buyers are opting for lighter jewellery, coins, bars and gold ETFs amid higher gold prices ahead of Dussehra and Diwali festivals.