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Just weeks ago, gold was hitting record highs. Now, it's in retreat. If you're in the market for the yellow metal, you're likely wondering: is this the start of a deeper correction or just a breather?
As of May 16, 2025, gold prices in India are down nearly Rs 9,000 per 10 grams from their April peaks. In cities like Kolkata and Chennai, 24-karat gold now hovers around Rs 95,000 per 10 grams, compared to Rs 1,02,000 just a few weeks ago.
What's happening with gold?
The global cues have turned less bullish. Strong US economic data, easing geopolitical tensions, and a firm US dollar are taking some shine off gold. Traders now expect the US Federal Reserve to delay rate cuts, which reduces gold's appeal as a non-yielding asset.
These developments have pulled international gold prices down, and the Indian market has followed suit.
Current gold rates in top cities
Here's a snapshot of gold prices across key Indian cities (per gram basis):
| City | 22K gold (Rs /gm) | 24K gold (Rs /gm) | 18K gold (Rs /gm) |
|---|---|---|---|
| Chennai | Rs 8,720 | Rs 9,513 | Rs 7,185 |
| Mumbai | Rs 8,720 | Rs 9,513 | Rs 7,135 |
| Delhi | Rs 8,735 | Rs 9,528 | Rs 7,147 |
| Kolkata | Rs 8,720 | Rs 9,513 | Rs 7,135 |
| Bangalore | Rs 8,720 | Rs 9,513 | Rs 7,135 |
| Hyderabad | Rs 8,720 | Rs 9,513 | Rs 7,135 |
| Source: Goodreturns | |||
What should investors do?
Despite the dip, gold remains a strategic asset in a diversified portfolio. Value Research recommends allocating 5-10 per cent of your portfolio to gold , preferably through sovereign gold bonds (SGBs) , which offer both price appreciation and 2.5 per cent annual interest.
For investors, this pullback may present a better entry point. But remember—gold isn't meant to sprint. It's there to cushion your portfolio during shocks.
Final word
Gold's drop isn't a meltdown—it's a moderation. For investors, it's an opportunity to accumulate at more reasonable levels, if you're underexposed. Just don't expect gold to work magic overnight. Its power lies in long-term patience and smart allocation.
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Disclaimer: This is not a recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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