Archive · 6 Oct 2026
Gold’s Sharp Pullback Raises Diwali Buying Opportunity Questions
Gold has become cheaper after reaching a high price earlier this year.
Several things, including higher US interest rates and a stronger dollar, have put pressure on its price.
Some analysts say the longer-term reasons people buy gold are still there.
But no one knows whether prices have reached their lowest point.
One analyst suggests buying in several smaller portions instead of all at once.
People buying jewellery can buy what they need for the festival.
Investors may consider Gold ETFs, which avoid jewellery-making charges.
Gold could still become cheaper before its price settles.
Gold fell from a January peak of $5,595 an ounce to about $4,100, a decline of more than 26%; another quoted market level was $4,136.
Higher US Treasury yields, a stronger dollar, shifting geopolitical expectations and rupee movements have weighed on gold prices.
Tata Mutual Fund says central-bank buying, fiscal concerns, geopolitical uncertainty and reserve diversification continue to support gold over the longer term.
Choice Broking’s Kaveri More advises against trying to call the bottom and suggests staggered purchases in three or four tranches.
More said gold could fall further before stabilising, with support around $3,950 an ounce; she also cited Gold ETFs as an option for investment purchases.
- Who
- Gold investors and Diwali jewellery buyers; views are given by analysts from Kotak Securities, Choice Broking and Tata Mutual Fund.
- What
- Gold has fallen sharply from its January peak, prompting discussion of whether current prices offer a buying opportunity.
- When
- Ahead of Diwali; the article describes price movements from January through mid-September and later levels around $4,100–$4,136 an ounce.
- Where
- Gold markets, including international prices quoted in US dollars per ounce and domestic MCX trading in India.
- Why
- The decline is attributed mainly to higher US Treasury yields, a firmer dollar, changing geopolitical expectations and rupee movements.
More cautious view
More constructive view
Whether current prices are an attractive entry point
More cautious view
Choice Broking’s Kaveri More describes the decline as consolidation and repricing, cautions against lump-sum buying, and says prices may fall further before stabilising.
More constructive view
Tata Mutual Fund says current levels offer investors who missed the earlier rally a significantly better entry point than at the start of the year.
Near-term versus medium-term outlook
More cautious view
More advises investors to avoid trying to identify the exact bottom and to keep funds needed for short-term expenses out of gold.
More constructive view
Tata Mutual Fund says structural supports—including central-bank demand, fiscal risks and geopolitical uncertainty—remain intact.
- January peak
- $5,595 per ounce
- Quoted recent levels
- Around $4,100 and $4,136 per ounce
- Peak-to-current decline
- More than 26%
- Domestic market level
- MCX gold was reported below ₹1.50 lakh
- Suggested buying approach
- Stagger purchases over the coming weeks in three or four tranches, according to Choice Broking’s Kaveri More
- Potential support
- Around $3,950 per ounce, according to More
- Longer-term supports cited
- Central-bank buying, fiscal concerns, geopolitical uncertainty and reserve diversification