Gold Price Crash: Down Over Rs 38,600 From Record High, What Happens Around Diwali 2026 and Is It the Right Time to Buy?

Gold price today and gold price crash headlines arrive just as families plan Dhanteras and Diwali purchases, so the question is natural: is this the right time to buy? The honest answer depends on whether you are buying jewellery to wear, or gold as an investment, and on how much price risk you can take.

This article on the gold price crash covers the price numbers, why gold fell, the support and resistance levels, what Diwali demand can and cannot do, and the ways to buy. It is educational and not a recommendation to buy or sell.

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Gold Price Crash: The Numbers

Gold price crash: MCX Gold 4 Dec futures	Level
Gold price today (about 10:13 AM, 26 Oct)	Rs 1,42,750 per 10 gm
Friday close (23 Oct)	Rs 1,42,024
Friday low	Rs 1,41,334
High on 9 Oct (close Rs 1,51,499)	Rs 1,51,700
Fall from 9 Oct close to 23 Oct close (my calculation)	About 6.3%
Fall from the January record (as reported)	21.43%, or over Rs 38,600
Silver 4 Dec futures	Rs 1,96,185 per kg, up 0.24%

The January record works out to about Rs 1,80,700 per 10 gm if the fall is 21.43% from Rs 1,42,024 (my calculation), which is close to the Rs 1,80,779 year high reported earlier by Business Standard. The gold price crash has therefore been much larger than the last two weeks suggest, and Diwali gold buying is happening far below the peak, and the recent leg down began after gold topped Rs 1,51,000 on 9 Oct.

The global side of the gold price crash is similar: international gold also fell about 4% last week and slipped toward $4,000 an ounce, with COMEX ending near $4,008 after dipping below $4,000. That was its weakest week in more than four months.

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Gold Price Today: How the Gold Price Crash Unfolded

Gold price crash: date	MCX Gold 4 Dec close per 10 gm
6 Oct	Rs 1,50,120
9 Oct	Rs 1,51,499 (high Rs 1,51,700)
14 Oct	Rs 1,45,848
16 Oct	Rs 1,47,918
21 Oct	Rs 1,46,079
22 Oct	Rs 1,43,309
23 Oct	Rs 1,42,024 (low Rs 1,41,334)

Gold price today is about Rs 8,700 below the 9 Oct close of Rs 1,51,499, a fall of about 5.8% in about two weeks (my calculation from Rs 1,42,750). The gold price crash was sharpest on 14 Oct and 22 Oct, when gold fell by about Rs 2,600 and Rs 2,800 a day. Volume on 22 Oct was the highest in the period, which shows heavy selling.

Why Gold Fell: The Drivers Behind the Gold Price Crash

Gold price crash: driver	Effect on gold
Brent crude above $112 to $115 on West Asia attacks	Lifts inflation and keeps interest rates high
Rising Treasury yields and rate expectations	Gold pays no interest, so it loses appeal
Stronger US dollar	Makes gold costlier for other buyers
Fed meeting on 27 and 28 Oct	Tighter policy expectations weigh on prices
AI-related equity correction	Investors sold liquid assets, including gold, to meet margin calls

Gold usually rises with fear, so a gold price crash during a war can look odd, and the gold price crash has surprised many buyers. The explanation in current reports is that the fear is about inflation and interest rates, not about growth, and higher rates favour bonds and the dollar over gold. A second reason is forced selling: when equities fall, some investors sell gold to raise cash.

A rupee near 95 to the dollar (implied by Reuters figures, my calculation) has softened the fall in Indian prices, since a weak rupee raises the rupee price of gold. Without it, the gold price crash in India would have been steeper.

Support and Resistance After the Gold Price Crash

Gold price crash: level	MCX gold per 10 gm	COMEX gold per ounce
Resistance 2	About Rs 1,48,000 (my reading of last week's range)	$4,170 to $4,200
Resistance 1	About Rs 1,46,000 (my reading of 21 Oct)	$4,070 to $4,100
Support 1	Rs 1,40,000 to Rs 1,41,000	$3,970 to $4,000
Support 2	Rs 1,37,500 to Rs 1,38,300	About $3,900

Enrich Money's Ponmudi R describes the technical outlook as weak, with a sustained move above resistance needed to improve it. The daily RSI is near 31, close to oversold, so a short-term relief rally is possible. The MACD is still negative. After a gold price crash of this size, bounces are common, but they do not by themselves signal a reversal.

The Friday low of Rs 1,41,334 did not break the Rs 1,40,000 to Rs 1,41,000 support zone, and Monday's early trade has held above it. A close below Rs 1,40,000 would raise the odds of a move toward Rs 1,37,500 (my reading).

Diwali 2026 Demand: Can It Stop the Gold Price Crash?

The gold price crash meets the festive season, since Dhanteras and Diwali fall in the first half of November 2026, so please confirm exact dates in the festival calendar. Festive buying often supports physical demand and pushes up premiums, but it rarely decides the price on its own. Prices are set by global gold and the rupee, and Indian demand is a small part of that mix.

A Chennai retail quote cited by BusinessToday put 24-carat gold at Rs 14,248 a gram, or Rs 1,42,480 per 10 gm, down 3.85% over the week from Rs 1,48,190. Retail prices include local taxes and differ by city, so check your jeweller's rate. For a gold price crash buyer, the wait for a perfect bottom can also mean missing the festival, and Diwali gold buying is as much a tradition as an investment.

Gold price crash: buying route	Points to check
Jewellery	Making charges, often 8% to 15% depending on the jeweller, add about Rs 11,420 to Rs 21,413 on 10 gm at Rs 1,42,750 (my calculation)
Gold coins and bars	Lower making charges but check purity and buy-back terms
Gold ETFs	Market-linked, no storage, trade on the exchange
Digital gold	Check the provider's credibility, costs and regulatory protection
Sovereign gold bonds	Availability depends on government issues

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Silver and Gold After the Gold Price Crash

Silver also slipped below Rs 2 lakh per kg, and MCX Silver 4 Dec futures traded near Rs 1,96,185 at 10:13 AM, up 0.24% on the day. Silver is more volatile than gold, so the gold price crash has been felt more sharply there. For Diwali gold buying, silver coins and utensils are popular too, but they carry the same price risk.

How to Approach Buying After a Gold Price Crash

1. Decide the purpose. Jewellery for a festival is a consumption choice, while gold for investment should fit your portfolio.
2. Stagger purchases. Spreading buys over several weeks reduces the risk of buying everything just before another fall.
3. Watch the Fed on 28 Oct. A hawkish tone can push gold toward support.
4. Compare the gold-silver ratio. Gold at Rs 14,275 a gram against silver at Rs 196.19 a gram gives a ratio of about 72.8 (my calculation).
5. Do not assume a bottom. BusinessToday cautions that buyers should not assume prices have bottomed.

Conclusion

The gold price crash has pushed MCX gold about 21.43% below its January record, to near Rs 1,42,750 per 10 gm, with support at Rs 1,40,000 to Rs 1,41,000 and the Fed on 28 Oct as the next trigger. Festive demand may help at the margin, but experts advise gradual buying over a single large purchase. Decide by purpose and risk profile after this gold price crash, and confirm prices with your jeweller or broker.

Frequently Asked Questions

How much has gold fallen from its record high?

Ans. The gold price crash has taken MCX gold about 21.43% below its January record, which is a fall of over Rs 38,600 per 10 gm. Gold settled at Rs 1,42,024 on Friday and traded near Rs 1,42,750 around 10:13 AM on Monday. These are futures prices and retail rates differ by city.

Why did gold prices fall?

Ans. Reports point to higher crude oil, inflation worries, rising US yields, a stronger dollar and forced selling by investors meeting margin calls after an equity correction. The Fed meeting on 27 and 28 Oct also keeps tighter policy in view. Because gold pays no interest, higher yields reduce its appeal.

What is the MCX gold support level now?

Ans. Support is at Rs 1,40,000 to Rs 1,41,000 and then Rs 1,37,500 to Rs 1,38,300, according to Enrich Money. Resistance on COMEX is near $4,070 to $4,100. A close below support can lead to lower levels, so the zone is worth tracking.

Is it the right time to buy gold before Diwali?

Ans. That depends on your purpose, time horizon and risk profile, and no one can call the bottom. Experts quoted by BusinessToday advise staggered buying and caution that prices may not have bottomed. This article is educational and not advice.

What is the price of gold in India today?

Ans. MCX Gold 4 Dec futures traded near Rs 1,42,750 per 10 gm at about 10:13 AM on 26 Oct 2026. A Chennai retail quote for 24-carat gold was Rs 14,248 a gram on Friday. Retail rates include taxes and differ by city, so please check your jeweller.

How do making charges affect the cost of jewellery?

Ans. Making charges are an extra cost that is not part of the gold value, and they often range from about 8% to 15% depending on the jeweller. On 10 gm at Rs 1,42,750 that is about Rs 11,420 to Rs 21,413 by my calculation. Compare coins, bars and ETFs if you want to invest.

Is this article on the gold price crash investment advice?

Ans. No. This article on the gold price crash is educational and the figures come from reports and data providers that can change. Please check the facts and your own risk profile before you buy gold.

Is this article investment advice?

Ans. No. It is educational and not a recommendation to buy or sell. Please check the figures against company filings and your own risk profile before you act on anything you read here.