Gold prices have experienced a significant correction of close to 30% from their record levels, with international spot rates falling from a historic $5,589 per ounce reached on January 28, 2026. According to reports from NDTV Profit, this decline brought domestic prices beyond the ₹1.8 lakh mark for 10 grams, but the metal has since found support at around $3,870 per ounce in October. Despite the sharp sell-off, gold continues to offer a degree of capital protection in a year marked by considerable market volatility. The recent retreat comes after an exceptional run-up in prices earlier this year, with the correction bringing prices down from their record highs but maintaining the broader annual trend that remains positive.
Retail prices of 24-carat gold are currently hovering around ₹1,44,570 per 10 grams, as reported by NDTV Profit. While prices have eased from their previous highs, the precious metal remains significantly more expensive than it was a year ago. At ₹1,30,860 on Dhanteras last year, gold has registered a year-on-year increase of nearly 7% to 8%, offering investors a positive return despite fluctuations in the broader market. With the festive buying season on, gold continues to hold its ground in the domestic market, demonstrating resilience even during the recent correction phase.
Analysts point to the unwinding of leveraged positions as a key factor behind the downturn, according to NDTV Profit reports. Expectations of tighter US monetary policy, following a change in Federal Reserve leadership, further weighed on sentiment. The CME's decision to raise margin requirements also contributed to the sharp adjustment. Market analysts do not see the recent decline as evidence that gold's broader upward trend has run its course, instead regarding the correction as a necessary adjustment driven by the unwinding of leveraged positions in an otherwise bullish market. The recent decline could offer long-term investors an opportunity to increase their exposure to gold, as the correction has reduced the gap between market prices and underlying fundamentals.
According to Monarch Networth Capital's Dhruv Joglekar, as reported by NDTV Profit, the recent correction has helped remove excessive speculative positions from the gold market without weakening the economic factors underpinning its longer-term prospects. The brokerage's proprietary valuation model, which compares the global stock of above-ground gold with the money supply of reserve currencies, estimates gold's fair value at between $3,248 and $4,595 per ounce. The model places the central estimate at $3,922, with the metal's fair value remaining within the projected valuation range even after the recent decline. Asset managers view the decline as a necessary adjustment that has reduced the gap between market prices and underlying fundamentals, with gold's underlying investment appeal remaining intact due to persistent macroeconomic uncertainties and its position as a preferred store of value.
