Gold Prices Snap Nine Week Winning Streak with First Weekly Loss
Correction Follows Sharp Rally as Investors Factor in U.S. Inflation Data and Trade Developments
New Delhi, Oct 25 : Gold snapped its nine-week winning streak this week, registering its first weekly loss as the market adjusted after a strong rally that pushed prices into overbought territory.
The price of 24-carat gold (10 grams) closed at ₹1,22,419 on Friday, down from ₹1,23,827 at the previous close, according to the India Bullion and Jewellers Association (IBJA). Globally, spot gold fell 0.3% to $4,113.05 an ounce in New York, marking a weekly decline of around 3.3%.
Analysts said the pullback was sharp but noted that losses were limited on Friday after weaker-than-expected U.S. inflation data bolstered hopes of further monetary easing by the Federal Reserve. The report also led to a slight decline in bond yields, supporting bullion prices.
Investors are also factoring in the potential for improved U.S.-China trade relations ahead of the meeting between President Donald Trump and President Xi Jinping. A de-escalation in trade tensions could reduce demand for safe-haven assets like gold.
The recent correction followed a strong rally that began in mid-August, during which prices reached an all-time high of $4,381.52 per ounce on Monday. Profit-taking and significant outflows from gold-backed ETFs intensified selling pressure.
Gold has surged about 57% this year, supported by central-bank purchases, dovish signals from the U.S. Federal Reserve, and robust ETF inflows. Ventura Securities recently noted that gold has delivered returns of nearly 63% in rupee terms since last Dhanteras, with forecasts suggesting the metal could reach ₹1.5 lakh per 10 grams by 2026.
