From mint · Pranati Deva · · 1m 40s
Gold Prices Drop 26% from Record High
Indian households shift to coins and ETFs as gold prices cool after record surge.
In brief
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 amid higher gold prices ahead of Dussehra and Diwali festivals. Originally reported by mint.
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.
The takeaway
Indian buyers are opting for lighter jewellery, coins, bars and gold ETFs amid higher gold prices ahead of Dussehra and Diwali festivals.
