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NewsSignals AI analysis·CNBC TV18·

Gold's 25% reset presents a pre-Dhanteras opportunity

Grade Abullish AI signal$XAU
Gold has fallen approximately 25% from its late-January 2026 record near $5,600 to around $4,179 per ounce, creating what analysts describe as a potential buying opportunity ahead of India's Dhanteras festival. Central banks purchased a record 289 tonnes in second-quarter 2026, while Indian gold ETFs attracted ₹4,451 crore in September inflows. Easing Treasury yields and continued institutional demand could support gold prices, although further volatility remains possible.

Bullish strength: 72/100

  • Central banks purchased a record 289 tonnes of gold in Q2 2026.
  • Indian gold ETFs recorded ₹4,451 crore in September net inflows.
  • US Treasury yields declined significantly during the week ended October 16.
  • Gold remained above its late-June low despite elevated inflation-protected yields.
  • The World Gold Council expects another strong year of official gold demand.

Bearish strength: 28/100

  • Gold remains approximately 25% below its January record high.
  • Elevated US Treasury and real yields increase the opportunity cost of holding non-yielding gold.
  • September US inflation reached 3.7%, exceeding expectations.

This is automated NewsSignals analysis of third-party reporting, not independent original reporting or investment advice. AI scores are not price predictions.

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Jewellers expect fall in gold prices to boost Dhantera sales

Indian jewellers expect stronger Dhanteras and Diwali sales following a 20-25% correction in gold prices from January's record highs, encouraging consumers to resume purchases. Industry leaders anticipate around 75 tonnes of gold sales during Dhanteras, while jewellers report a 40-50% increase in customer enquiries following the recent price decline. Strong festive and wedding demand could support gold consumption in India, potentially cushioning downward pressure on prices.