Gold Prices Fall 21.4% Globally In 2026; Indian Investors See Smaller 14.9% Decline

New Delhi, November 11: Gold prices have witnessed a sharp correction in 2026, falling 21.4% from their January record highs in the international market. However, Indian investors have experienced a relatively smaller decline of 14.9%, supported by the weakening rupee and higher import duties.

According to an Axis Mutual Fund report, gold prices in dollar terms fell 21.4% between January 30 and October 30, 2026, compared to a 14.9% decline in rupee terms in India.

The depreciation of the Indian rupee against the US dollar played a key role in limiting the domestic price correction. The rupee weakened from around Rs 89 to Rs 96 against the dollar during the period, making imported gold more expensive.

The government’s decision to increase gold import duty from 6% to 15% in March 2026 further supported domestic prices by raising import costs.

Globally, gold prices came under pressure due to profit-booking following January’s record highs. Expectations of prolonged high US interest rates, a stronger dollar and rising Treasury yields also weakened demand for the precious metal.

What Lies Ahead For Gold Prices?

Despite the recent correction, Axis Mutual Fund remains positive about gold’s long-term prospects. US interest rates, dollar movements and central bank purchases are expected to influence prices over the next six to 12 months.

According to the report, global central banks purchased 57 tonnes of gold in the first quarter of 2026 and 289 tonnes in the second quarter. They also bought 39 tonnes in August, highlighting continued institutional demand.

Gold is expected to retain its appeal as a safe-haven asset amid inflation concerns and geopolitical uncertainties. However, experts advise investors to adopt a staggered investment approach rather than making large lump-sum investments amid market volatility.