Gold prices in the international market also fell from record levels. Spot gold fell from a high of $5,626 per ounce to around $5,046.30 per ounce, a decline of about 10.5 percent.

Will gold prices fall sharply soon?

Gold Price Predictions: In 2025, gold delivered strong returns to investors, overshadowing the performance of the stock market. The rally continued in early 2026, with gold prices reaching ₹1,80,779 per 10 grams on the Multi-Commodity Exchange of India (MCX). However, a sharp decline followed, and on Friday last week, the price slipped to ₹1,56,200 per 10 grams. This represents a decline of approximately ₹24,500, or approximately 13.5 percent, in a single week.

Why the big fall in gold?

Gold prices have also fallen below record levels in the international market. Spot gold fell from a high of $5,626 per ounce to around $5,046.30 per ounce, a decline of approximately 10.5 percent. Analysts attribute this decline to reports related to Russia.

The news agency Bloomberg, citing Russian international documents, reported that the Kremlin is considering expanding economic partnerships with the United States and that Moscow may be open to trading in US dollars. If this happens, it would be considered a blow to the BRICS countries' "de-dollarization" strategy.

What do experts say?

Until now, there had been discussions among BRICS countries about increasing the role of local currencies or gold as alternatives to the dollar in trade. However, Russia's potential return to the dollar has dampened this sentiment, impacting gold's strong price momentum. Furthermore, uncertainty regarding US inflation data and interest rates is also putting pressure on gold.

If the US Federal Reserve holds off on rate cuts or maintains a dovish stance, the dollar could strengthen, and a strong dollar is generally considered negative for gold prices. Overall, global geopolitical cues, dollar strength, and interest rate uncertainty have played a significant role in gold's recent sharp decline.