MUMBAI– Gold is expected to open on a weaker note in domestic markets on Wednesday following a sharp 5.5 percent drop in global prices — the steepest single-day decline since August 2020. Analysts said the correction could pull Indian gold prices down to around Rs 1.22–Rs 1.23 lakh per 10 grams.
The fall in international prices has prompted profit-booking among investors who benefited from the metal’s record-breaking rally earlier this year. Silver prices also slid more than 2 percent, hovering near $47.6 per ounce after plunging 7.1 percent in the previous session.
Both gold and silver extended their slide from all-time highs, while Asian equity markets showed mixed trends after a subdued session on Wall Street. Analysts said the sharp pullback in precious metals reflected a wave of profit-taking amid fears that gold’s rally had entered a “bubble zone.”
Gold prices had surged nearly 60 percent this year, driven by central banks diversifying away from the U.S. dollar and strong retail demand through exchange-traded funds. Concerns over fiscal imbalances in major economies and expectations of further U.S. Federal Reserve rate cuts had also supported the rally.
However, sentiment has turned cautious as hopes rise for progress in trade talks between the United States and China. U.S. President Donald Trump said he anticipated a “good deal” in his upcoming meeting with Chinese President Xi Jinping, though he acknowledged potential obstacles remain.
Analysts expect short-term volatility to persist as investors weigh profit-taking against broader global economic signals. Still, many maintain that gold will remain a favored safe-haven asset in the longer term. (Source: IANS)
