Gold has long been one of the most trusted investment options for Indian households, jewellers, and traders. Known as a safe-haven asset, its price movements are closely watched by everyone—from large institutional investors to small families buying jewellery for weddings. Over the past few weeks, the gold market in India has experienced a significant shift. After touching record highs, prices have now started to decline sharply. This sudden drop is being driven by a combination of domestic and international factors.
In this detailed report, we break down the current gold prices in India, the reasons for the recent fall, and what experts predict for the coming days.
Current Gold Prices in India
As of the latest update, gold prices have fallen across major trading hubs in India. Here’s a breakdown of the current rates:
- 24-karat gold (Mumbai, per 10 grams) – ₹100,950 for October futures, marking a drop of around 0.83% in a single day.
- Physical market rates (August 13):
- 24K gold – ₹10,139 per gram
- 22K gold – ₹9,294 per gram
- 18K gold – ₹7,604 per gram
- GoodReturns data:
- 24K – ₹1,01,400 per 10 grams
- 22K – ₹92,950 per 10 grams
- 18K – ₹76,050 per 10 grams
The decline has been notable over the past four days, with 24K gold dropping nearly ₹19,100 per 100 grams and around ₹1,910 per 10 grams. This represents one of the steepest short-term corrections seen this year.
Moneycontrol also reported that between August 11 and now, the average price of 24K gold increased slightly from ₹98,280 to ₹99,120 per 10 grams, but this came after an earlier steep fall. Similarly, 22K gold moved from ₹93,600 to ₹94,400 per 10 grams in the same period, showing that prices are fluctuating daily.
Why Gold Prices Are Falling
The fall in gold prices is not the result of a single factor. Instead, it’s the combined effect of market sentiment, global cues, and changing investment patterns. Let’s break down the main reasons:
1. Profit Booking by Investors
When gold touched record highs—crossing ₹1.02 lakh per 10 grams—many investors and traders decided to book profits. This selling pressure in both domestic and international markets triggered a short-term decline. High prices often encourage profit-taking, especially among traders who entered the market earlier at lower rates.
2. Reduced Safe-Haven Demand
Gold is traditionally considered a safe-haven investment during times of economic uncertainty, political tension, or global crisis. However, recent developments suggest easing geopolitical risks and improving global market sentiment. As tensions ease, investors are shifting funds to riskier assets like equities, reducing demand for gold.
3. Clarity on Import Tariffs
In the international market, U.S. President’s recent statement clarifying that gold will not be subject to import tariffs brought relief to global markets. This reduced uncertainty around supply and trade, which in turn lowered prices.
4. Weak Physical Demand in India
India is one of the largest consumers of gold in the world, especially for jewellery. However, the record high prices discouraged physical buyers. Many jewellers reported lower footfall and reduced wedding-season purchases. Dealers in India were even forced to offer discounts of up to $9 per ounce to attract buyers.
5. Market Correction After Rally
Earlier in 2025, gold prices had surged over 38%, driven by global demand, inflation concerns, and market volatility. However, such steep rallies often lead to price corrections. The recent fall could be seen as a natural cooling-off phase before prices stabilise.
6. Technical Trading Levels
Market analysts suggest that gold prices are now testing key support levels. Many experts believe that ₹93,000 per 10 grams is an important threshold—if prices fall below this, the next support level could be much lower, possibly around ₹88,000.
Expert Views on Future Prices
The outlook for gold prices remains mixed. Some analysts believe that the correction is temporary and that prices may rise again if economic conditions worsen or global tensions increase. Others warn that the downward trend could continue for a while due to weak demand and profit-taking.
- Bullish View: Supporters of this view argue that inflationary pressures, a weaker rupee, and seasonal demand during festivals could push prices back up.
- Bearish View: On the other hand, those predicting further declines point to strong equity markets, reduced safe-haven buying, and high interest rates as factors that could keep gold under pressure.
Impact on Jewellery Buyers
For jewellery buyers, the current price drop is a welcome change. The high prices earlier in the year forced many to postpone purchases. Now, with rates falling, some customers are returning to the market—especially those planning wedding purchases in the coming months. However, jewellers caution that if prices remain volatile, buyers might continue to hesitate.
Investment Advice for Gold Buyers
If you are considering investing in gold right now, here are a few points to keep in mind:
- Diversify Investments: Avoid putting all your money into gold. Balance it with other asset classes like equities, bonds, and fixed deposits.
- Track Support Levels: Keep an eye on key market levels—₹93,000 per 10 grams is considered a crucial support point.
- Buy in Phases: Instead of investing a large amount at once, buy in small quantities to average out your cost.
- Watch International Trends: Global factors like U.S. interest rate changes, currency movements, and geopolitical events often impact gold prices in India.
Global Factors Affecting Indian Gold Prices
India’s gold market is closely linked to global markets. The current price drop is also being influenced by:
- Stronger U.S. Dollar: A stronger dollar makes gold more expensive for buyers in other currencies, reducing demand.
- Bond Yield Movements: Rising yields on government bonds offer better returns compared to gold, encouraging investors to shift money away from the precious metal.
- Central Bank Policies: Actions by the U.S. Federal Reserve and other central banks on interest rates and liquidity affect global gold prices.
Will Prices Drop Further?
Some commodity experts believe that if gold fails to hold above ₹93,000, a fall towards ₹88,000 per 10 grams is possible. However, festival season demand in India—especially during Dussehra and Diwali—could limit the downside. Additionally, any sudden geopolitical or economic shock could quickly reverse the current trend.
Summary Table of Current Prices
Gold Type Price (₹ per 10g) Trend ,24K (Current) ₹1,00,950 , Down 24K (Physical Avg) ₹1,01,400 , Down 22K, ₹92,950–₹94,400 ,Down 18K ₹76,050 Down
Conclusion
Gold prices in India have dropped sharply after months of upward momentum. This correction is mainly driven by profit booking, lower safe-haven demand, weak physical buying, and improved global market sentiment. While the decline is good news for jewellery buyers, investors should approach the market with caution, closely tracking domestic and international trends.
The coming weeks will be crucial in determining whether prices stabilise near current levels or continue to slide towards lower supports. For now, gold remains a valuable asset, but timing your entry could make all the difference in maximising returns.