Gold’s Glitter Dims After Five-Day Rally
After a week of record-breaking highs, the gold market finally showed signs of cooling down. On Friday, gold prices in Delhi slipped by ₹500, settling at around ₹60,200 per 10 grams. The decline follows a five-day rally that had pushed rates to unprecedented levels, leaving investors both thrilled and cautious.
For many traders, the sudden correction did not come as a surprise. “When prices surge so quickly, a pullback is natural. Profit booking at such levels is expected,” said Anil Bansal, a bullion dealer in Delhi’s Chandni Chowk market. The correction, though small compared to the recent surge, has sparked a round of fresh debates among investors on whether the yellow metal’s bull run is over or merely pausing.
Why the Fall Now?
Several factors are at play behind gold’s dip. Analysts highlight profit booking as the most immediate reason. After five consecutive sessions of gains, many short-term traders decided to lock in their profits, triggering a sell-off.
But global cues have also contributed. Concerns over a possible US government shutdown have rattled markets, increasing volatility in the dollar. Normally, political uncertainty in the US boosts gold as a safe-haven asset. However, in this case, the strengthening of the dollar index has applied pressure on bullion prices. A stronger dollar makes gold costlier for overseas buyers, limiting demand.
Meanwhile, the movement of US bond yields has also weighed on sentiment. Higher yields tend to reduce the appeal of non-yielding assets like gold, especially among institutional investors.
Investor Mood on the Ground
In local markets, jewellers reported mixed responses. While retail customers saw the dip as an opportunity to buy, many wholesale buyers remained cautious. “Weddings are coming up in the next two months, so demand will stay intact. But investors are watching the international market closely. Nobody wants to buy at the peak,” said Sunita Mehra, a jeweller in Karol Bagh.
Interestingly, some investors believe this correction is temporary. For them, global uncertainties — ranging from inflation concerns to geopolitical tensions — still make gold an attractive long-term bet. “Short-term corrections don’t change the larger picture. Gold has always been the go-to hedge in times of uncertainty,” noted Rajesh Gupta, an independent market analyst.
Global Market Impact
Globally, spot gold also faced pressure. Prices eased in international markets as traders reacted to the dollar’s strength and shifting interest rate expectations. The US Federal Reserve’s policy stance remains a key driver for global bullion prices. If the Fed signals a pause in rate hikes, gold could gain momentum again.
At the same time, international investors are keeping a close eye on energy markets. Rising oil prices have fueled fresh inflation concerns, which could ultimately support gold demand. However, the interplay between inflation fears and interest rate policies will determine the trajectory in the coming weeks.
What Experts Predict Next
So, is this the end of gold’s dream run or just a healthy breather? Most experts lean towards the latter. According to commodity strategists, as long as inflation fears, geopolitical risks, and economic uncertainties persist, gold will remain well-supported.
“Investors should not panic. This correction is an opportunity for staggered buying,” said a note from a leading brokerage. Analysts suggest that gold could retest higher levels if global uncertainties persist, especially with the looming US government crisis and energy price fluctuations.
For domestic buyers, the festival season may also lend support to demand. With Diwali and wedding purchases around the corner, jewellers expect strong retail activity to cushion prices from falling too far.
Final Word
Friday’s dip in gold prices may feel like a setback for those who expected an uninterrupted rally, but seasoned traders view it as a natural pause. The market has been riding high on global uncertainty, and a small correction was inevitable.
For everyday investors and families preparing for festive purchases, the dip could actually be good news. Buying gold at slightly lower rates offers some relief after weeks of soaring prices. But as always, the glittering metal keeps reminding us — what shines today may shift tomorrow, and only those with patience truly reap its rewards.