Gold prices on the Multi Commodity Exchange (MCX) have tumbled more than ₹38,600 from their peak of ₹1,80,779 per 10 grams, recorded on January 29, 2026. The metal settled at ₹1,42,024 on Friday, marking a 21.43% drop from its record high. This decline reflects broader pressure on precious metals, with gold down 4.7% in October alone.
The sell-off was driven by escalating Middle East tensions, rising crude oil prices, and persistent US inflation concerns. Internationally, gold fell around 4% during the week, slipping below $4,000 per ounce for the first time since mid-July. Silver also weakened, trading near $54 per ounce on Friday.
Experts noted that the correction was worsened by weakness in US technology stocks, particularly AI-linked companies, which triggered margin calls and forced investors to liquidate precious-metal holdings. Despite this, lower prices encouraged physical gold purchases in India during the Dussehra festival, though Chinese demand remained subdued.
Ponmudi R, CEO of Enrich Money, identified ₹1,40,000 as a crucial support level. He suggested that while festive demand could offer some support, broader market trends, including US interest-rate expectations and geopolitical developments, would remain key drivers. Aamir Makda of Choice Broking echoed this, noting that gold's long-term investment case remains strong but that near-term consolidation is likely.