After rising to all-time highs in the past few days, gold prices on Tuesday fell due to profit-booking. The precious metal has delivered more than 65% returns this year so far. According to experts, a correction
in the yellow metal’s prices may be expected, which can be seen a buying opportunity for long-term investors. He, however, said an “outright collapse” is not expected, as the fundamental drivers have not changed.
The year 2025 has been one of the best years for gold in decades, delivering over 60 per cent returns after hitting over 50 all-time highs. Silver outpaced gold to witness its best year since 1971.
Ross Maxwell, Global Strategy Operations Lead, VT Markets, said, “After such a strong year and an increase of 60%, gold prices are vulnerable to a correction, although the fundamental drivers have not changed. So, I would not expect an outright collapse. A combination of global uncertainty, geopolitical tensions, central bank buying, expectations of interest-rate cuts, and currency weakness has all created the environment for gold’s strong performance.”
Profit taking by short-term traders, any delays in rate cuts by the US Fed and other central banks, a stronger dollar, or easing geopolitical risks can trigger short-term corrections. Corrections in gold are often shallow and time-based rather than deep price crashes, especially when structural drivers like persistent inflation risks, rising sovereign debt, and diversification away from fiat currencies remain intact, he added.
“For investors, the strategy should be balanced rather than reactive. Those who entered at lower levels may consider partial profit-taking while maintaining a core allocation, as gold continues to serve as a hedge against volatility and macroeconomic shocks. Fresh investors should use dollar cost averaging (DCA) strategies to buy on dips. Gold’s portfolio presence should be aligned with an investor’s risk appetite and long-term goals, rather than chasing momentum,” Maxwell said.
He also said investors with a long-term horizon can view any meaningful correction as an opportunity to add gradually. “Gold should continue to be treated as a strategic asset for hedging, diversification and capital protection.”
Ponmudi R, CEO of Enrich Money, said, “Gold remains in a strong bullish structure but is currently facing stiff resistance near its lifetime high zone of $4,385–$4,400. Over the last two sessions, prices attempted to break this resistance but witnessed profit booking, settling near $4,335. Today marks another attempt to clear this critical band. A decisive breakout and sustained close above $4,400 would confirm a fresh higher-high formation and could trigger an extension toward $4,500 and above.”
On COMEX, gold continues to consolidate within the $4,325–$4,385 range. The earlier breakout above $4,303 has now turned into a strong support base, keeping the broader trend firmly bullish. Any intraday dip below $4,326 may lead to short-term consolidation toward $4,300, but this would be corrective in nature unless the support breaks decisively, he added.
“On the domestic front, MCX Gold marked fresh lifetime highs near Rs 1,35,496 and formed a classic Doji candle near resistance, indicating profit booking at higher levels. Sustained trade above the breakout zone is essential to resume momentum, with the next expansion zone placed at Rs 1,36,000-Rs 1,38,000. The bullish structure remains intact as long as prices hold above Rs 1,33,000-Rs 1,32,600,” Ponmudi R said.
In Mumbai, the price of 24-carat gold stood at Rs 1,33,860 per 10 grams, while 22k gold was available at Rs 1,22,700 per 10 grams. These rates do not include GST and making charges. Silver was available at Rs 1,99,100 per kg in the spot market.
