Gold prices in India corrected significantly on Wednesday after hitting more than Rs 1 lakh mark in 10 grams. Gold has witnessed broadly a strong demand from investors amidst global uncertainties, with gains of 28% to 30% compared to other assets year-to-date. With gold already expensive and near Rs 1 lakh, experts believe investors should make gold as their stability anchor but not a lifeboat.
On Wednesday, 100 grams of gold dropped by Rs 30,000 to Rs 9,83,500 in 24K, while 100 grams of gold in 22K and 18K nosedived by Rs 27,500 and Rs 22,500 to Rs 9,01,500 and Rs 7,37,600 respectively.
Moreover, 10 grams of gold price slipped by Rs 2,250 to Rs 73,760 in 18K, while the price plunged by Rs 3,000 to Rs 98,350 in 24K, and dropped by Rs 2,750 to Rs 90,150.
"Trump's continously shifting stance on trade policy has undermined investor trust and weakened confidence in the US economy. This has weakened US dollar, which has plummeted 10% in 2025 and has helped the gold rally. After gaining 30% this year and reaching highs of $3500 and Rs 1 lakh, prices have plunged today by $200 (~Rs 4000) as sentiment has turned risk-on," Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Limited (RSBL) said.
Going ahead, short term stalling is expected in the yellow metal. Since, gold rates surged substantially around 30% YTD, it is likely to intermittent correction, said, Sandip Raichura, CEO - Retail Broking and Distribution, Director - PL Broking and Distribution.
"We believe Gold may be at a short-term stall around current levels as uncertainty reduces - led by Trump U-turns on issues such as the Fed chair continuing or tariffs on China - and one would need to continue to watch the DXY movements carefully to ascertain the direction of the precious commodity. Structurally however Gold may continue to be on a bull run as governments and investors across the world continue to diversify away from US treasuries and buy into Gold as a part of a longer-term hedge hence much higher levels in the next 12 months are likely," Raichura added.
Amidst this, how investors should invest in gold?
Data from Trivesh D, COO of Tradejini revealed that gold prices have delivered a stellar 31% return from October 2024 to April 22, 2025. The prices climbed from 6% in October to a whopping 37%.
Despite the strong surge, Trivesh believes retail investors should keep gold exposure between 10% to 15% of their overall portfolio. He said that is enough to cushion against volatility without losing growth opportunities elsewhere.
According to Trivesh, Gold is gaining more strategic weight now, it is not just about emotion or tradition anymore. Investors see it as a real store of value, especially as fiat currencies waver. However, with prices at all-time highs, it is not the right time to chase momentum. Stagger your entry, look for dips, and consider ETFs over physical gold unless it's for long-term holding.
Having said that, Trivesh added, Indian women deserve credit here for their longstanding practice of investing in gold, not as a trend, but as a habit rooted in wisdom. They have quietly built-up family wealth through gold, and today, it's proving to be one of the smartest assets to hold.
Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.
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