Gold prices may dip on Wednesday after a sharp 5.5% global fall — the steepest since 2020. Analysts expect Indian gold rates to slide to ₹1.22–₹1.23 lakh per 10 grams amid profit-booking and easing global fears.

Gold Set to Open Lower After Sharp Global Decline; Domestic Prices May Slip to ₹1.22 Lakh Range

Mumbai: After months of rallying, gold appears headed for a correction. Following a steep 5.5% global drop — the sharpest since 2020 — the yellow metal is expected to open weaker in Indian markets on Wednesday, with domestic prices likely easing to ₹1.22–₹1.23 lakh per 10 grams.

The decline comes amid widespread profit-booking and cooling investor sentiment as global economic worries show signs of stabilising. Silver mirrored the downtrend, losing over 2% to hover around $47.6 per ounce after a heavy fall in the previous session.

Market watchers say the retreat in both gold and silver reflects investors cashing in on recent gains after a year-long surge driven by uncertainty over inflation, central bank policies, and geopolitical tensions.

“Many traders are now taking a step back, believing that gold’s rally has run its course for the short term,” analysts observed. Despite this, experts maintain that gold will continue to serve as a safe-haven asset in the long run, though short-term volatility remains inevitable.

Analysis: The dip offers a reminder that even safe-haven assets aren’t immune to market cycles. For Indian investors, this could be an opportunity to re-enter the market at lower levels — but only with a long-term perspective. With festive demand fading and global cues mixed, short-term buyers may want to stay cautious until prices stabilise.