Dhanteras is considered one of the most auspicious occasions to buy gold. This year, however, investors are approaching the festive season amid a sharp correction in the yellow metal. Domestic gold prices are hovering around ₹1,42,000 per 10 grams, down more than 20% from their peak of nearly ₹1,80,000.
Geopolitical tensions in the Middle East, a stronger US dollar and elevated interest rates have weighed on gold prices, raising questions about the sustainability of the metal’s long-term bull run. However, continued central bank purchases and sustained inflows into gold exchange-traded funds (ETFs) could support the outlook, according to an Axis Direct report.
Despite the recent correction, gold has delivered a return of nearly 8% since last Dhanteras, significantly outperforming the Nifty 50, the report noted. The recent decline could therefore offer investors an opportunity to reassess their gold allocation as they look to make fresh investments during the festive season.
Investor interest in gold ETFs has remained resilient despite volatility in prices. Gold ETFs attracted approximately $89 billion in inflows in 2025, compared with $3.4 billion in 2024, reinforcing the metal's appeal as a safe-haven asset amid global economic and geopolitical uncertainty.
The trend continued in 2026, with gold ETF inflows reaching approximately $39 billion through September. Sustained inflows, even when gold prices were elevated, indicate continued investor interest and could provide further support to bullion, Axis Direct said in its report.