After months of record highs, gold prices in India are projected to undergo a sharp correction of up to ₹50,000 per 10 grams starting in September 2025, according to market analysts and commodity forecasters. The Multi Commodity Exchange (MCX) had recently seen gold futures breach the ₹1,01,000 mark, but technical indicators and global cues suggest a steep reversal may be imminent.
What’s Driving the Sudden Drop?
Several macroeconomic and geopolitical factors are converging to trigger this price shift:
- Profit Booking: After hitting all-time highs, investors are cashing out, leading to selling pressure
- Strengthening US Dollar: A stronger dollar reduces gold’s appeal as a hedge, pushing prices down
- Federal Reserve Policy: Signals of sustained high interest rates are diverting capital toward bonds and equities
- Reduced Central Bank Buying: Global central banks, including China and Russia, are slowing gold accumulation
- Festive Demand Dip: Economic tightening may reduce gold jewelry purchases during India’s festive season
Gold Price Forecast for September 2025
| Date Range | Projected MCX Price (₹/10g) | Trend |
|---|---|---|
| Early September | ₹1,01,000 | Volatile |
| Mid September | ₹95,000–₹98,000 | Correction |
| Late September | ₹90,000–₹92,000 | Stabilizing |
| October Outlook | ₹85,000–₹88,000 | Bearish Bias |
Analysts from CMA Knowledge and BuddyLoan suggest that the correction could be temporary, with long-term bullish sentiment still intact due to inflationary pressures and geopolitical risks.
Should You Buy, Hold, or Wait?
Experts recommend:
- Short-term traders: Exercise caution and avoid fresh entries until prices stabilize
- Long-term investors: Use dips as buying opportunities for portfolio diversification
- Jewelry buyers: Wait until mid-September for better rates ahead of festive purchases
