Gold Outlook: Gold remains a preferred investment and festive purchase for Indian households, with demand typically picking up during Dussehra, Diwali and the wedding season. However, elevated prices are changing buying patterns, prompting some families to opt for lighter jewellery while others are turning to coins, bars and gold exchange-traded funds (ETFs).
With the yellow metal having corrected from its record highs, buyers are assessing whether the dip offers an opportunity to purchase gold or whether prices could face further pressure.
Gold prices edged higher on Tuesday, supported by a softer US dollar, as investors looked ahead to the US Federal Reserve's October 27–28 policy meeting for clues on the future path of interest rates. Spot gold rose 0.1% to $4,145.22 per ounce by 0347 GMT, while US gold futures for December delivery gained 0.1% to $4,164.70.
The recovery followed a correction of more than 26% from record highs in January 2026. According to CME's FedWatch Tool, traders were pricing in an 82% probability that the Federal Reserve would leave interest rates unchanged at its October meeting, although expectations of a rate hike in December remained elevated at 89%. Higher interest rates typically weigh on gold because bullion does not pay interest, increasing the opportunity cost of holding it. A weaker dollar, meanwhile, makes greenback-priced gold more affordable for overseas buyers.
Ashish Rajodiya, Head of Commodities at PL Capital, said softer crude prices and lower Treasury yields had supported bullion after recent volatility. He added that the Fed's policy statement and upcoming inflation data would be key triggers, while a renewed oil-price spike or hawkish signals could put pressure on gold and silver.