Gold prices trade at 20 per cent discount from peak ahead of Dhanteras
Domestic gold prices are hovering around Rs 1,43,000 as geopolitical tensions and a strong US dollar impact the market, according to the Economic Times.
Domestic gold prices are currently trading at approximately Rs 1,43,000, representing a discount of more than 20 per cent from the peak of Rs 1,80,000, according to a report by the Economic Times.
The Economic Times stated that Middle East geopolitical tensions, a powerful US dollar, and high Federal Reserve interest rates have pressured prices. This has led to questions regarding the long-term trend for the metal.
Several factors could trigger a price rally, including a potential ceasefire between the US and Iran and future interest rate cuts by the Federal Reserve. If the Fed begins cutting rates in 2027, gold may benefit from lower bond yields.
Central bank purchases and exchange-traded fund (ETF) inflows also provide support. Annual central bank buying has been around 1,000 tonnes in recent years, while gold ETF inflows reached approximately $39 Bn through September 2026.
In India, the depreciation of the rupee against the US dollar supports domestic prices. The rupee has moved from around Rs 89.85 at the start of 2026 to approximately Rs 96.73.
Senior Research Analyst Deveya Gaglani expects gold prices could deliver returns of 15-20 per cent by the next Dhanteras, with target prices of Rs 1,65,000 to Rs 1,71,000.
