Gold price crashes over ₹38,600 from record high — What'll happen amid Diwali 2026 fervour? Right time to buy? Decoded - Livemint

AI desk brief

Gold on MCX has fallen more than ₹38,600 from its record ₹1,80,779/10g peak on 29 Jan 2026, settling at ₹1,42,024 on Friday, while international gold dropped about 4% for the week and slipped below $4,000/oz for the first time since mid-July. Silver was also weaker near $54/oz. The sell-off was driven by profit-taking, a stronger US dollar, elevated bond yields, persistent US inflation concerns, and margin-call liquidation tied to weakness in US tech stocks.

The article says the correction is meeting some physical support from India, where lower prices boosted Dussehra buying, but Chinese jewellery demand remains subdued. Analysts cited expect gold to stay in consolidation or a mildly bearish phase into Diwali as central-bank policy, real yields, and domestic affordability weigh on demand; key MCX support is seen around ₹1,40,000, with downside targets at ₹1,38,000-₹1,36,000 if that breaks and recovery potential toward ₹1,48,000-₹1,52,000 if it holds.