Gold prices have plunged: Should you buy yellow metal this Diwali? - The Times of India

AI desk brief

Gold has corrected sharply in USD terms, but the article argues the Diwali backdrop remains constructive for Indian buyers because rupee weakness and the May import-duty hike have cushioned local prices. It cites MCX gold near Rs 1,45,800/10g, Comex gold around $4,110/oz, and says the near-term driver is still elevated U.S. bond yields, a strong dollar and expectations for more Fed tightening, with a 27-28 October Fed meeting as the next catalyst.

Flow data are mixed but improving: global gold ETF demand recovered strongly, with a record $31bn in July-September and total holdings at 4,256t, while Indian gold ETFs took in Rs 4,450 crore in September and another Rs 1,722 crore in early October. Physical demand is softer in China and India, but jewellery sales remain resilient and the article flags central bank buying as supportive even as some reserve managers reduced gold exposure.