Gold Prices Plummet 20% From Record High Amid Heavy Indian Investment

Gold prices have taken a hit, falling 20% from their record high after a strong rally that drew in heavy investment from Indian investors. The current price of international gold is around $4,400 an ounce, which is more than 21% higher than a year ago but about 21% below its January record of $5,595.

In India, the price of MCX gold touched a record ₹1,69,349 per 10 grams on March 2 before falling to around ₹1,34,500 in July. It has since recovered to nearly ₹1.52 lakh per 10 grams.

Indian investors poured a record ₹68,868 crore into Gold ETFs during FY26, with January alone seeing inflows of ₹24,040 crore. The assets under management in Gold ETFs also rose sharply to around ₹1.71 lakh crore.

The recent correction highlights the risks of buying an asset after a sharp rally. Gold can play a role in diversifying a portfolio, but investors should consider their overall exposure and investment objectives rather than focusing only on recent returns.