Gold Prices Witness Sharp Correction from Record Highs
Gold prices on India's Multi-Commodity Exchange have experienced a significant downturn, declining by more than ₹8,000 per 10 grams from their historic peak levels recorded just one month ago. This substantial pullback comes amid mixed global signals, uncertainty surrounding the India-US trade agreement, and diminishing expectations for the Federal Reserve's anticipated December rate reduction.
Price Movement and Key Levels
The precious metal reached its unprecedented high of ₹132,294 per 10 grams during October 2025. Since achieving this milestone, gold has retreated considerably, settling at ₹124,195 per 10 grams as of November 21, 2025, marking a decline of ₹8,099. During Friday's commodity market session, prices remained relatively stable, closing nearly flat compared to the previous session's finish at ₹124,191.
Market specialists attribute this recent downward trend primarily to the weakening Indian Rupee against the US dollar. The currency situation worsened on Friday when the Rupee plummeted to a new record low of ₹89.43 against the US dollar, further pressuring gold valuations.
Expert Analysis and Market Outlook
Sugandha Sachdeva, Founder of SS WealthStreet, observed that gold has been trading within a constrained range of ₹1,18,000 to ₹1,28,000 per 10 grams since mid-October 2025. She noted that macroeconomic elements have been the primary drivers behind the recent volatility in the yellow metal.
According to Sachdeva, gold regained some momentum following comments from New York Fed President John Williams, who indicated the central bank's potential openness to implementing rate cuts in the foreseeable future. This development arrives as global market participants eagerly await the US Federal Reserve meeting scheduled for December 9-10, 2025.
"The Dollar Index is also facing stiff resistance near the 100.50 mark, and unless this level is taken out decisively, further upside in the dollar may remain limited, likely offering short-term support to gold," Sachdeva explained. She emphasized that forthcoming US retail sales data, the PCE price index, movements in the US Dollar Index, and the Indian Rupee's trajectory will collectively influence gold's short-term direction.
Investment Strategy and Technical Perspectives
Ross Maxwell, Global Strategy Lead at VT Markets, expressed cautious optimism about potential gold price appreciation while acknowledging that further gains are not guaranteed. "Gold should not be seen as a hedging or diversification tool, nor as a source of short-term gains. A small allocation of 5-10% is ideal, with opportunities to increase on dips as real yields fall and safe-haven demand grows," Maxwell advised investors.
From a technical standpoint, Sugandha Sachdeva identified ₹121,700 per 10 grams as a crucial support level based on daily closing prices, while ₹128,000 represents a significant resistance threshold. She suggested that a decisive breakthrough above ₹1,28,000 could potentially open pathways toward new record highs.
Ponmudi R, CEO of SEBI-registered Enrich Money, provided additional technical insights, noting that MCX gold faces key support within the ₹1,21,800 to ₹1,22,000 range. He established short-term targets between ₹125,500 and ₹127,200, with medium-term objectives reaching ₹1,27,200 to ₹128,800+. The near-term resistance is positioned between ₹1,24,500 and ₹1,25,000.
"A dip below ₹1,21,800 may trigger short-term cooling but is unlikely to threaten the broader uptrend," Ponmudi R stated, reinforcing that the overall market sentiment maintains a strongly bullish structure. He highlighted that fundamental support remains robust, driven by the RBI's purchasing strategy, geopolitical uncertainties, and safe-haven capital flows, creating compelling buying opportunities during trendline declines.
