Bhubaneswar: After weeks of record-breaking gains, gold prices have witnessed their steepest fall in over a decade, marking a sharp correction in the global bullion market. International gold rates tumbled more than 5%, slipping below $4,100 per ounce, while in India, domestic prices dropped by nearly ₹4,000 per 10 grams ahead of Diwali.
Market experts attributed the fall to profit booking after an unprecedented 50% annual surge driven by safe-haven demand, central bank purchases, and geopolitical tensions. Analysts, however, view the decline as a healthy correction rather than the start of a prolonged downturn.
“After such a strong rally, a short-term correction was inevitable. The fundamentals for gold remain robust amid global uncertainty and inflationary pressure,” said Anil Muthiah, a senior commodities analyst.
Despite the temporary dip, investor sentiment toward gold remains bullish. Global exchange-traded funds (ETFs) recorded record inflows in the past month, underscoring continued demand among institutional investors. Meanwhile, the Reserve Bank of India’s gold holdings have now surpassed $100 billion, reflecting the metal’s strategic importance as a financial safeguard.
Analysts predict that volatility may persist in the short term, particularly with the strengthening of the U.S. dollar and shifting interest rate expectations. However, they maintain that gold’s long-term appeal as a hedge against uncertainty remains strong amid ongoing trade tensions and geopolitical risks.
-OdishaAge
