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Gold prices (Gold Price Today), which had skyrocketed in the beginning of the year 2026, are now seeing a huge decline. In January 2026, gold in India had reached its record high of Rs 1 lakh 80 thousand per 10 grams, which has now come down to around Rs 1.43 lakh. That means gold has become cheaper by Rs 37,000 per 10 grams directly from its highest level. Globally too, gold’s shine has faded and it is now trading around $4,040, down about 28 per cent from January’s record high of $5,602 an ounce. In such a situation, the biggest question in the minds of investors is whether they should buy gold now in the continuously falling market or wait for the prices to fall further?
Main reasons for the huge fall in gold prices
According to economic experts, there are two biggest reasons behind the pressure on gold prices: first, the tight monetary policy of the US Federal Reserve and second, global geopolitical tensions. Fed Chairman Kevin Worsh has made it clear that his priority is only to control inflation. The market does not expect any cut in interest rates in the near future, rather there is a possibility of further increase in rates in the September meeting. When interest rates are high, investors turn to other options that give better returns instead of gold, which increases pressure on gold. Apart from this, Iran war, military action and ongoing uncertainty in crude oil prices have also had a deep impact on the global gold market.
Is buying gold now a profitable deal? (historical data)
If you are thinking of investing in gold, then it is very important to understand its historical trend. Even though gold is witnessing severe fluctuations in the short term, gold has always been a profitable deal in the long term. If we look at the data of the last 30 years, gold has given excellent returns of about 950 percent to the investors. At the same time, its compound annual growth rate (CAGR) in the last 5 years has been around 19 percent. However, market history also bears witness to the fact that whenever gold makes a record high, it is followed by a strong correction (fall) of up to 40%.
What is the right strategy for investors?
Market experts and wealth managers believe that due to global tension and Fed rates, gold prices may remain volatile in the short term. Therefore, if you want to keep 10 to 15 percent gold in your portfolio from a long-term perspective, avoid investing all the money at once. Instead, buying gold gradually (on SIP lines) over different periods of time in this falling market may prove to be a wise and safe strategy.