After Record Surge, Gold Suffers Sharpest Drop Since 2013 Amid Global Sell-Off

After a year of steep gains, gold prices are finally witnessing a correction. The yellow metal, which touched an all-time high of ₹1,32,000 per 10 grams before Diwali and Dhanteras, has now slipped to around ₹1,28,000, marking a drop of nearly ₹4,000 or 3%.

In global markets, gold saw its sharpest intraday fall since 2013, tumbling 6.3% to nearly $4,000 an ounce in October. Futures also dipped by 1.4% on Wednesday, following Tuesday’s 5.3% slide.

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Analysts say this pullback comes after months of relentless gains driven by fears over US debt, inflation, and expectations of rate cuts by the Federal Reserve. Rajesh Rokde of the All India Gem and Jewellery Domestic Council said the correction was “natural” after such a strong rally and predicted prices would remain firm due to steady global demand.

According to market data, 24-carat gold is now priced at ₹1,27,200 per 10 grams, down ₹3,380, while 22-carat gold fell ₹3,100 to ₹1,16,600. 18-carat gold trades around ₹95,400 per 10 grams.

Silver also extended its losing streak, dropping ₹100 to ₹1,63,900 per kg, as global supplies tightened amid heavy Indian demand and rising consumption by the solar industry.

Traders believe this short-term dip could spark renewed buying ahead of the wedding season, traditionally one of India’s strongest periods for gold demand. Despite the correction, experts maintain that gold’s long-term outlook remains bullish, supported by global uncertainty and strong domestic interest.