Is Gold Set to Open Weak After a Significant Global Decline?
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Synopsis
As gold prices face a steep global drop, the domestic market is poised for a sluggish start post-Diwali. With expectations of prices falling to Rs 1.22–Rs 1.23 lakh per 10 grams, investors are urged to consider market signals carefully. Discover the implications of this decline on your investments.
Key Takeaways
- Gold prices may open weak in the domestic market.
- A significant global decline of 5.5% has occurred.
- Expected correction to Rs 1.22–Rs 1.23 lakh per 10 grams.
- Profit-taking among investors is prevalent.
- Market sentiment is cautious amid trade talks.
Mumbai, Oct 22 (NationPress) The demand for gold is anticipated to diminish following Diwali, as the yellow metal is predicted to commence on a lackluster note in the domestic arena this Wednesday.
This forecast arises after a significant drop in international gold prices, which fell sharply by 5.5 percent — marking the most considerable decline since August 2020.
Market analysts foresee Indian gold prices correcting to approximately Rs 1.22–Rs 1.23 lakh per 10 grams upon market opening.
The decrease in global prices has incited profit-taking among investors who had previously capitalized on gold's recent surge.
Similarly, silver has also seen a dip of over 2 percent, trading close to $47.6 per ounce after plummeting by 7.1 percent in the prior session.
Both gold and silver have continued their decline from record peaks, while Asian stock exchanges displayed mixed outcomes following a subdued session on Wall Street.
Experts suggest that the steep fall in precious metals signifies a wave of profit-taking after their rapid ascent this year.
“Many investors have become cautious, suspecting that gold's rally may have entered a bubble phase,” analysts commented.
This year's surge was propelled by concerns regarding the fiscal stability of major economies, particularly the US, along with anticipations that the Federal Reserve might lower interest rates further by year-end.
Gold prices had skyrocketed nearly 60 percent this year, driven by central banks diversifying away from the dollar and retail investors pouring funds into exchange-traded funds.
Market sentiment has also turned wary after indications of potential advancement in trade negotiations between the US and China.
US President Donald Trump expressed optimism for a “good deal” in his forthcoming meeting with Chinese President Xi Jinping, though he acknowledged possible challenges ahead.
Analysts assert that while gold remains a favored safe-haven asset in the long run, short-term fluctuations are likely to persist as investors navigate profit-taking alongside global economic indicators.
Point of View
It is essential for investors to maintain a balanced perspective. While gold has historically been viewed as a safe haven, the recent volatility underscores the importance of being well-informed and cautious. At NationPress, we advocate for a careful analysis of market trends and economic indicators to guide investment decisions responsibly.
NationPress
22/10/2025
Frequently Asked Questions
What caused the recent drop in gold prices?
The recent 5.5% decline in gold prices is attributed to profit-taking among investors after a significant rally, alongside concerns over the fiscal health of major economies.
What are the expected gold prices in India?
Analysts expect Indian gold prices to correct to around Rs 1.22–Rs 1.23 lakh per 10 grams when markets open.
How does the global market affect Indian gold prices?
Indian gold prices are heavily influenced by international market trends, including fluctuations in global gold prices and investor behavior.
What should investors consider during this volatility?
Investors are advised to balance profit-taking with insights from global economic signals to make informed decisions.
Is gold still a safe investment?
While gold remains a preferred safe-haven asset over the long term, short-term volatility suggests that investors should proceed with caution.
