Why is the gold price dropping?
The U. S. Dollar Index surged to its highest levels since mid-2024, making gold more expensive for international buyers and triggering automatic selling. Federal Reserve officials hinted at a higher for longer interest rate stance, temporarily reducing the appeal of non-yielding assets like gold. I suggest gold purchases with a ten year or more horizon. Short term volatility can be there based on near term events but one should not be perturbed by this. Gold itself is such an instrument which can be a good hedge to market risk, inflation, geo-political risks, wars, etc. TOI.gold prices have surged over 54% year-to-date, hitting multiple record highs in 2025, including the latest peak of $4,381. October 20, but have retreated more than 8% since then.Gold prices tend to bottom out in July, based on 10-year average data. You can maximize savings by comparing online and offline rates—sometimes, pure gold coins are cheaper online. Jewelers in smaller towns may offer additional discounts during off-peak months to attract customers.Price volatility: The price of gold can be volatile, and it may fluctuate significantly over short periods. This can make it difficult to predict its value and can make it a risky investment.
Is gold expected to go up or down?
Morgan Stanley Research expects the rally to continue and revised its 2026 gold forecast upward to $4,400 per ounce, a significant increase from its previous estimate of $3,313. The new projection implies an additional gain of about 10% from early October to the end of next year. Here’s what will drive the rally. India’s gold market anticipates a strong year-end and early 2026, with prices expected to climb due to a weakening rupee and rising global rates. Analysts predict domestic gold to trade between Rs 1,20,000–Rs 1,35,000 per 10 grams this year, potentially reaching Rs 1,45,000 next.
What is the cheapest time to buy gold?
If you’re eyeing the calendar, January, August, September, and December have historically been good months for buying gold. Prices tend to go up during these times, so you might catch a good deal. Is there any chance to reduce gold rate in 2025? Yes, factors like stronger rupee, lower inflation, and higher interest rates suggest there could be any chance to reduce gold rate in the short term.Last 1 year Gold CAGR – 39. Last 3 years Gold CAGR – 24. Gold Returns last 5 years – 13. Gold CAGR last 10 years – 13.Q2. Is the gold price expected to decrease in the future? Gold prices are unlikely to fall in the coming years, as global uncertainty and central bank purchases continue.
Is it good time to buy gold now?
From a technical perspective, gold now looks oversold. We are likely to see prices moving back up in the short term before the correction continues – if it continues. Based on these factors, it seems that the most sensible decision for investors now would be to look at the recent correction as an opportunity to buy. Historically, the stock market has delivered higher returns than gold. This growth potential makes stocks a favored choice for long-term investors seeking capital appreciation. While stocks can be volatile in the short term, they offer substantial gains over extended periods.
When not to buy gold?
Like other commodities, precious metal prices rise as demand goes up, so when economic anxiety or instability is high, the people who typically profit from precious metals are the sellers. Premiums, fees, and commissions can also drain the profit from your purchase. Optimism over a US-China trade deal has dented the demand for precious metals. Moreover, profit-taking at higher levels is another factor derailing the gold price rally.