Gold Prices in India Fall as Bullion Corrects

In India, the pullback has been sharp enough to cut about Rs 5,600 per 10 grams over three days, or Rs 56,000 per 100 grams, according to market reports. That kind of move directly affects jewelry demand, investment flows and hedging behavior, especially with Diwali-related buying still influencing the retail market.

The weakness in bullion is also being reinforced by firmer rates elsewhere. The U.S. 10-year Treasury yield was at 5.05%, making non-yielding gold less attractive, while the iShares Gold Trust, GLD, slipped to $373.51 and the gold miner ETF GDX eased to $83.95, showing pressure on both the metal and the equities tied to it.

Technical indicators point to a market that has lost some momentum after the earlier surge. GLD is trading below its 50-day moving average and 200-day moving average, while RSI readings have cooled from overbought levels, a sign traders are still working through the aftershock of the rally. Adalytica’s Gold Fear & Greed Index shows sentiment in fear territory at 29, underscoring how quickly positioning has flipped.

For investors, the key question is whether this is a brief correction or the start of a deeper unwind in a trade that had become crowded. A sustained drop would pressure bullion funds, miners and retail dealers, but it could also revive physical buying in India if lower prices hold.

The next catalyst is whether global yields and the dollar keep rising or whether bullion finds support from safe-haven demand and seasonal buying into the festival period.