Gold Rate Crashes Over ₹42,000 From January Peak Ahead of Diwali: Why Are Prices Falling? Is It the Right Time to Buy? Check State-Wise Gold Price Trends

Gold Price in India Today: The precious yellow metal is witnessing a downfall today. Gold prices have seen a massive correction ahead of Diwali 2026. Now, the domestic good news is that this price dip is offering a big opportunity for buyers. Especially for Indians who traditionally believe in buying gold on Dhanteras, this could be a good opportunity for them to purchase gold at a lower price.

According to analysts, there is also a greater possibility of gold prices falling further before Diwali arrives. This gold price fall does not have a domestic reason behind it; it is due to the global gold correction.

The yellow metal, which touched record highs in January, has lost more than ₹42,000 per 10 grams, raising questions about whether this is the right time to invest in gold.

On November 2, the average price of 24K gold stands at ₹13,888 per gram, while 22K gold is available at ₹12,730 per gram.

From changing global economic conditions to the US Federal Reserve's interest rate outlook, several factors are driving the decline. But will prices recover before Diwali?

Also Read: Gold Price Today: Why Are Gold Rates Falling Ahead Of Dhanteras And Diwali? Check The 30-Day Trend

City-Wise 22K And 24K Gold Rates Today 

Gold prices have declined significantly from their earlier highs. Here is a look at the average gold rates across different purity levels on November 2, 2026.

Note: Prices are per 10 grams, as provided. Rates are indicative and may vary during the day.

Month-by-Month Indian Gold Rate Comparison (October 2025 – October 2026)

Why Are Gold Prices Falling Ahead Of Diwali?

The decline in gold prices is linked to several international economic developments:

- US Federal Reserve Policy: Expectations of higher interest rates have reduced gold's appeal. After all, investors may prefer interest-bearing assets over bullion that offers no regular returns.

- Stronger US Dollar: A stronger dollar makes gold more expensive for international buyers using other currencies, potentially weakening demand and putting additional pressure on global bullion prices.

- Rising Crude Oil Prices: Higher crude oil prices have fuelled inflation concerns, raising expectations of tighter monetary policies. This has created another hurdle for gold's price recovery.

- Investor Liquidation: Selling pressure in global equity markets has pushed some investors to liquidate gold holdings to meet margin calls and liquidity requirements, adding to the metal's downward pressure.

- Weak Global Demand: Subdued jewellery demand in major Asian markets has added pressure to bullion prices. When traditional buyers step back, gold loses an important source of support.

- Higher Treasury Yields: The World Gold Council highlighted rising US Treasury yields, dollar strength and reduced futures positioning as factors behind September's decline. However, festive demand has offered some support to Indian gold prices.

Also Read: Why Silver Prices Are Crashing Ahead Of Dhanteras And Diwali? Check Rates In India, 15-Day Trend And List Of Factors Behind