Gold prices witnessed a sharp correction on Tuesday, declining by ₹1,700 per 10 grams to settle at around ₹1.35 lakh in domestic markets. The fall brought an end to a four-day record-breaking rally, during which gold prices had surged to historic highs.
Market experts attributed the decline to profit booking by investors after the recent sharp rise, along with easing global cues. Despite the drop, gold prices continue to remain elevated compared to earlier levels, reflecting sustained investor interest amid global economic uncertainty.
Silver prices also moved lower in line with gold, as traders turned cautious after the recent rally in precious metals.
Why Did Gold Prices Fall?
Analysts point to multiple factors behind the dip:
- Profit booking after record highs
- Slight improvement in global market sentiment
- Movement in international gold prices
- Fluctuations in the US dollar
However, experts believe gold remains supported in the medium term due to geopolitical tensions and expectations around interest rate movements.
Market Outlook
Despite the decline, bullion traders say gold prices may continue to stay volatile in the near term. Any fresh global uncertainty or movement in central bank policies could again influence prices.
