Gold Market Trends Show Signs of Potential Reversal

Global Gold Prices Correct Sharply Amid Geopolitical Tensions

Gold prices have corrected sharply from their peak in 2026, with a decline of nearly 20 per cent from the US-Iran conflict driven high recorded in end-February. As of June 11, gold prices are now below the levels seen before the government hiked import duty.

The correction in gold prices has raised questions about the precious metal's status as a safe haven. Until March, investment advisors were pushing investors to allocate up to 20-25 per cent of their portfolios to gold. However, despite ongoing geopolitical tensions in several regions, including the US-Iran conflict and the Russia-Ukraine situation, gold prices have dropped by about 6 per cent in the first ten days of June alone.

The drop in gold prices is not limited to India. The World Gold Council reported that global net outflows from gold ETFs (exchange traded funds) reached US$ 2 billion in May 2026, across countries except Europe. In India, gold ETFs recorded net outflows of Rs 725 crore in May, marking the category's first monthly outflow in 13 months.