Gold prices in India have dropped nearly 21% from their record high of ₹1,80,779 per 10 grams, settling around ₹1,42,364. This correction follows a strong rally earlier in 2026, with gold futures on the MCX falling 1.51% on Friday, 6 November, to ₹1,41,917 per 10 grams. The decline has been driven by weaker spot demand, though long-term returns remain robust, with prices rising from around ₹30,000 in 2016 to nearly ₹1.50 lakh in 2026.
Both gold and silver have seen sharp corrections after peaking earlier this year. MCX gold reached around ₹1.65 lakh per 10 grams in March but has since retreated to nearly ₹1.40 lakh. Silver has experienced an even steeper drop, falling from its peak of around ₹4 lakh per kg in February to nearly ₹1.70 lakh. The volatility in precious metals reflects broader market uncertainties.
Analysts at Motilal Oswal and Kedia Advisory highlight several factors influencing gold's outlook, including the upcoming US midterm elections, monetary policy shifts, and geopolitical tensions. While central banks continue to support gold with significant purchases, the metal's safe-haven appeal has been challenged by rising interest rate expectations and inflation concerns. Kedia Advisory remains cautiously bullish for November, December 2026, citing central bank demand and potential shifts in real yields.
Technical analysis suggests gold is holding near key support levels, with immediate resistance at ₹1,46,232 and deeper support at ₹1,35,000. Motilal Oswal recommends a 'Buy on Dips' strategy, identifying an accumulation zone of $3,800, $3,900 per ounce for international gold, with short-term targets of $4,200 and medium-term targets of $4,500, $4,700 per ounce.