Gold prices plunge 26% from record high as dollar strengthens

Gold prices have fallen 26% from their record high, with spot gold dropping to $4,007 per ounce by October 23, down from January's peak of $5,419, amid rising US dollar strength and higher Treasury yields. The decline follows a January MCX high of Rs 2,47,917 per 10 grams, with domestic prices falling to Rs 1,42,800 by October 22. Analysts attribute the drop to profit-taking, elevated oil prices sustaining inflation, and expectations of prolonged high interest rates. Geopolitical tensions and central bank purchases continue supporting gold's long-term outlook. Experts predict prices may dip to $3,950 before stabilizing, with potential 10-15% gains within two to three months if prices hold above $4,200.