Gold Prices Ease After Five-Day Surge
After five consecutive sessions of record-breaking gains, gold prices dipped by Rs 500 on Friday, closing at Rs 1,20,600 per 10 grams in Delhi, according to data from the All India Sarafa Association. The correction comes amid profit booking by traders and a slight recovery in the US dollar, which weighed on investor sentiment.
Just two days earlier, gold of 99.9% purity had reached a historic peak of Rs 1,21,100 per 10 grams, reflecting the strong momentum in precious metals. Similarly, gold of 99.5% purity fell by Rs 500, ending at Rs 1,20,000 per 10 grams, down from Rs 1,20,500 in the previous session.
Local bullion markets were closed on Thursday due to Gandhi Jayanti and Dussehra, leading to reduced trading activity ahead of the dip.
Global Market Trends and US Dollar Influence
Internationally, spot gold slipped to $3,863.51 per ounce after reaching a record high of $3,897.20 a day earlier. Analysts attribute the pullback to a mild rebound in the US dollar, which typically moves inversely to gold prices.
“Bullion pulled back from its record highs as traders locked in profits following a strong rally, while the dollar’s strength capped gains,” said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
Despite the temporary dip, gold remains on track for its seventh consecutive weekly gain, marking the longest winning streak since February 2025. This sustained momentum highlights the ongoing safe-haven demand amid global economic and geopolitical uncertainties.
Factors Supporting the Gold Rally
According to analysts, the rally in gold prices is being driven by a combination of economic fears, rising US tariffs, and central bank gold purchases. The US government shutdown has also heightened market anxiety, further boosting demand for the yellow metal.
“Increased US tariffs raise concerns about global trade, driving investors toward gold as a hedge against uncertainty,” noted Renisha Chainani, Head of Research at Augmont Gold For All. “Persistent geopolitical tensions are also reinforcing gold’s appeal as a safe-haven asset,” she added.
Meanwhile, silver prices mirrored the trend, dipping Rs 500 to Rs 1,50,000 per kilogram in India. Globally, however, spot silver gained nearly 1%, trading at $47.34 per ounce, following a recent high of $48.10.
Gold Rate Today 22K and City-Wise Price Trends
In regional markets, the gold rate today 22k also showed a slight decline. In Hyderabad, 1 gram gold rate today stands around Rs 11,050, reflecting a drop in line with the national trend.
Other major cities, including Mumbai, Chennai, and Bengaluru, also witnessed similar corrections as global market cues weighed on sentiment. Analysts, however, expect prices to remain supported above Rs 1,20,000 per 10 grams, barring a significant shift in the US dollar or interest rate outlook.
Investor Outlook: Correction or Buying Opportunity?
While short-term traders took profits after a record-breaking run, many experts view the current dip in gold prices as a healthy correction rather than a reversal. With ongoing geopolitical tensions, high inflation, and central bank accumulation of gold, analysts believe the long-term trend remains bullish.
“Safe-haven demand remains robust, especially amid the uncertainty surrounding the US economy and potential interest rate shifts,” said Gandhi. “Gold’s structural uptrend is likely to continue in the coming months.”
Volatility Ahead, But Sentiment Stays Positive
Despite the minor pullback, gold prices remain near their all-time highs, supported by strong fundamentals and sustained investor interest. While short-term fluctuations are expected, the long-term outlook for the precious metal continues to favor the bulls.
As global tensions and inflationary concerns persist, gold is expected to maintain its position as a preferred store of value and hedge against volatility.
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