By My Stock Bzaar News Desk | November 2025
After months of record-breaking highs, gold prices in India are witnessing a significant correction. The yellow metal, long regarded as the safest investment during uncertain times, has cooled off after touching historic peaks — leaving investors wondering whether this is the right time to buy gold or exit before a bigger fall.
This article explores the gold price correction in India, the reasons why gold prices are falling, the best gold investment options, and an in-depth gold forecast for 2026 — based on insights from My Stock Bzaar’s commodities market analysis.
1. Gold Price Correction in India — What’s Really Happening?
After a dream rally driven by inflation fears, geopolitical uncertainty, and central bank buying, gold prices have pulled back sharply.
On the MCX, gold prices have dropped from ₹72,000 to around ₹66,000 per 10 grams — a decline of 7–8%.
In the international market, spot gold has cooled from $2,380 per ounce to around $2,280, marking its steepest correction of 2025.
According to My Stock Bzaar gold news analysis, this correction is not a crash — it’s a healthy consolidation phase after a historic rally.
2. Why Gold Prices Are Falling Now
💵 a. Strengthening U.S. Dollar
The U.S. Dollar Index (DXY) has surged, putting pressure on gold. A stronger dollar makes gold more expensive for foreign buyers, reducing global demand.
The Federal Reserve’s policy of keeping interest rates high is further boosting the dollar — the biggest short-term negative for gold.
🏦 b. Fed Policy Impact
The Fed policy on gold remains the most powerful influence.
With U.S. inflation moderating, the Fed has delayed rate cuts expected in 2025, pushing them toward mid-2026.
Higher rates mean higher returns on bonds and savings, diverting capital from non-yielding assets like gold.
📉 c. Central Bank Demand Slowing
Data from the World Gold Council (WGC) shows a 15% decline in central bank gold purchases compared to last quarter.
China and Turkey, two major buyers, have paused accumulation, softening gold demand.
💰 d. Profit Booking
After a nearly 25% rally over 18 months, global funds and investors are locking in profits, adding to downward price pressure.
🌍 e. Cooling Inflation
With global inflation easing and oil prices stabilizing, the immediate need for gold as an inflation hedge has weakened — triggering short-term selling.
3. Gold Investment in India — Domestic Market View
India remains the world’s second-largest consumer of gold, and domestic sentiment has shifted slightly as prices stabilized.
🇮🇳 Retail Demand Slows
Jewellers report a 10–12% dip in retail demand this festive season as high prices deter small buyers.
Consumers are waiting for more corrections before re-entering the market.
🏠 Rural Demand Weakness
Rural gold purchases, often tied to crop income, have been impacted by weaker monsoon rains and lower rural liquidity.
🏦 Imports Ease
India’s gold imports have dropped by around 18% year-on-year, according to commerce data, signaling a softer trend in physical demand.
Despite the short-term dip, India’s cultural and investment appetite for gold remains strong — especially as a hedge against inflation and currency depreciation.
4. Commodities Market Analysis — Understanding the Bigger Picture
The correction in gold is part of a broader commodities market adjustment.
Silver, platinum, and crude oil have also seen price corrections in recent months.
According to My Stock Bzaar’s commodities analysis team, investors are rotating capital back to equity and bond markets, leading to temporary weakness in safe-haven assets like gold.
However, analysts emphasize this as a pause, not a reversal, in gold’s long-term uptrend.
5. Gold Forecast 2026 — My Stock Bzaar Prediction
Despite the near-term volatility, experts predict gold will resume its uptrend in 2026, supported by global liquidity easing, central bank buying, and rising debt levels.
| Key Drivers | Impact on Gold 2026 |
|---|---|
| Federal Reserve’s rate cuts (mid-2026) | Bullish |
| Higher government debt and inflation risk | Bullish |
| Renewed central bank buying | Positive |
| Slower global growth | Supportive |
| Dollar stabilization | Neutral |
📈 Projected Gold Targets 2026:
- Global: $2,500 per ounce
- India (MCX): ₹75,000 per 10 grams
Analysts at My Stock Bzaar say the next breakout could come after Q2 2026, when central banks start easing interest rates.
6. Gold ETF vs SGB — Which Is the Better Option?
With the market correction in full swing, investors are comparing Gold ETFs and Sovereign Gold Bonds (SGBs) for the best entry.
| Feature | Gold ETF | Sovereign Gold Bond (SGB) |
|---|---|---|
| Liquidity | High | Medium (8-year maturity) |
| Interest | None | 2.5% annual interest |
| Tax Benefits | Short-term capital gains | Tax-free at maturity |
| Storage Cost | None | None |
| Best For | Traders / Short-term | Long-term investors |
✅ My Stock Bzaar Recommendation:
Investors seeking flexibility can opt for Gold ETFs, while long-term investors looking for returns beyond price appreciation should prefer SGBs.
Both remain superior to physical gold in terms of safety, taxation, and returns.
7. Technical Analysis — Key Price Levels
| Market | Support Zone | Resistance Zone | Outlook |
|---|---|---|---|
| MCX Gold | ₹65,500–₹66,000 | ₹72,000–₹73,000 | Neutral (short-term), Bullish (long-term) |
| Spot Gold (USD) | $2,250 | $2,350 | Range-bound |
If MCX gold sustains above ₹66,000, prices are expected to stabilize and rebound gradually.
A break below ₹65,500 could trigger a test of ₹64,800, offering fresh buying opportunities for investors.
8. Should You Buy Gold Now?
According to My Stock Bzaar’s gold investment experts, the answer is simple — Yes, but gradually.
Corrections like these are rare chances to accumulate gold at lower prices before the next uptrend.
Gold remains a vital part of a diversified portfolio, especially in an era of high global debt, political uncertainty, and inflationary risk.
💡 Smart Investor Strategy
- Start Systematic Investment Plans (SIPs) in Gold ETFs or SGBs.
- Avoid speculative trading during volatility.
- Maintain a 10–15% allocation in gold within your total portfolio.
9. My Stock Bzaar Expert Insights
“Gold’s correction is a reality check, not a red flag. Every long-term rally pauses before making new highs — this is that pause,”
— Commodities Desk, My Stock Bzaar
Experts believe that the gold correction in India will soon stabilize around ₹66,000 levels before resuming its journey toward ₹75,000 in 2026.
10. Key Takeaways for Investors
✅ Gold’s fall is macro-driven, not structural.
✅ Use dips to accumulate strategically via Gold ETFs or SGBs.
✅ Maintain 10–15% portfolio allocation to gold.
✅ Watch Fed policy, U.S. dollar, and central bank demand for cues.
✅ Long-term outlook for gold remains bullish for 2026.
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