Gold prices in India are facing downward pressure ahead of the festive seasons of Dhanteras and Diwali, with experts pointing to higher bond yields, a strong US dollar, and shifting expectations from the US Federal Reserve as key factors. The MCX gold rate has dropped to around ₹1,42,800 per 10 grams, significantly lower than its peak of ₹1,80,779 per 10 grams reached on January 29, 2026.
Nirpendra Yadav, a senior research analyst at Bonanza, attributes the decline to selling pressure driven by a stronger US dollar, rising Treasury yields, and changing expectations around the Federal Reserve’s interest-rate policy. He also notes that profit-booking after earlier rallies and volatility in futures markets have intensified price movements.
Despite the current downturn, some experts anticipate a rebound in gold prices due to strong demand during the festival season. Kaushlendra Sinha, CEO at IAGES, highlights that consumers continue to view gold as a trusted store of value, with buyers becoming more informed and conscious about purity, ethical sourcing, and transparency.
Anuj Gupta, a SEBI-registered market expert, expects a short-lived rebound in gold prices if the US Federal Reserve leaves interest rates unchanged at its upcoming meeting. However, he cautions that the longer-term outlook remains cautious, with the US dollar, bond yields, inflation data, and Federal Reserve policy signals likely to determine the next direction.
Looking ahead, Pponmudi R, CEO at Enrich Money, identifies immediate resistance levels at ₹1,43,000 to ₹1,43,700 and ₹1,45,300 to ₹1,46,000, with immediate support at ₹1,40,000 to ₹1,41,000. Anuj Gupta suggests that if the US 10-year bond yield corrects further post-Fed meeting, gold prices could rise towards ₹1,49,000 to ₹1,50,000 per 10 grams ahead of Dhanteras and Diwali.