The constant decline in gold prices over the past few months has raised investor concerns. People are confused whether to buy gold now, wait a bit or sell gold? Gold prices have fallen about 13.6% in the last 6 months and are down about 5% so far in 2026.
According to data from Bullions.in, gold was trading at ₹1,51,710 per 10 grams on October 11, while the price in the international market was $4,220.30 per ounce. Gold prices touched a high of $5,595 per ounce on January 29, leading to a significant drop of around 26% in international prices. Similarly, prices in the Indian market also fell by around 23%.
The biggest reason behind the decline in gold prices is the rise in US bond yields. Currently, the US 10-year Treasury yield has risen to around 5.27%. Since gold pays no interest, high-yielding bonds have become more attractive to investors. Due to this, the demand for gold has decreased. Additionally, the Iran conflict has pushed up crude oil prices, raising inflationary concerns. After hitting record highs, profit booking by investors and uncertainty in the market have also put pressure on gold.
Despite this slowdown in prices, many major financial experts and institutions maintain a positive outlook on gold. According to Mira Asset Mutual Fund, the market is being supported by continued gold purchases by central banks around the world. It is estimated that total gold demand by central banks could reach around 700 tonnes in 2026, significantly higher than the average of 4,700 tonnes between 2010 and 2021. Central banks are turning to gold to diversify their foreign exchange reserves and reduce their dependence on the US dollar.
Additionally, investors remain interested in gold due to risks related to global energy supply, closure of trade routes and rising government debt. Gold demand in India is expected to increase during the festive and wedding season. An increase in domestic purchases during major festivals like Navratri, Dussehra, Dhanteras and Diwali could support prices.
JPMorgan predicts that, during the last quarter of 2026, the average price of gold may remain around $6,000 an ounce. According to a report, it may reach $6,300 by the end of the year 2027. However, the bank has reduced its target slightly from its earlier estimates of February 2026. According to the bank’s analyst Greg Shearer, most investors are currently avoiding gold due to concerns about energy-related inflation and potential interest rate hikes by the Federal Reserve.
Market experts believe that more weakness can be seen in gold in the short term. However, long-term demand will support prices. A resolution of the Iran conflict and stabilization of crude oil prices will provide clarity on bond yields and inflation, which will determine gold’s next move. At present, will the price of gold fall more significantly? This is difficult to predict. Therefore, investors are advised to keep a close eye on the market conditions.
Note: The information provided here is for information only. TV9 Gujarati does not in any way advise investing or selling in shares, gold and silver, mutual funds and IPOs. Investing in the market involves potential risk. Always consult your financial advisor or market expert before investing.
Buy ‘gold’ soon, the price will reach ₹ 3 lakh? Baba Venga’s prediction heated up the market
. Source
