Gold Falls Nearly 25% From Record High: Is This the Time to Buy?

Gold Falls Nearly 25%: Gold has taken a sharp fall after its huge run-up in 2026. The metal has been under pressure as the US dollar stays firm and Treasury yields move higher. Recent Reuters reports also showed gold falling after the Federal Reserve kept rates steady but signaled a possible hike later this year, which makes a no-yield asset like gold less attractive to hold. Gold had already raced to record highs earlier in the year, so traders are now asking whether this pullback is just a pause or the start of a deeper fall.

Sachin Sawrikar, Managing Partner at Artha Bharat Investment Managers IFSC LLP, said the drop is coming from a mix of inflation worries linked to the oil shock, a stronger dollar, higher-for-longer rates, and the unwinding of leveraged bets.

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He also said, “These are cyclical pressures rather than signs of a structural breakdown,” Sawrikar said, adding that the bigger long-term case for gold is still supported by heavy government debt, central bank buying, and doubts about reserve currencies.

What Investors are watching now

Analysts are not calling a final bottom yet. Even so, the fall has made some long-term investors think again about gold exposure.

Sawrikar said, “Whether this is the entry point or there’s more downside, nobody knows. But investors with a five-year horizon and no allocation to precious metals should at least be asking the question,” he said. That is the kind of line that makes investors stop, blink, and check their portfolios twice.

Even with the recent weakness, gold is not without backup. Reuters has reported that central bank buying has stayed strong, ETF flows remain important, and global uncertainty still gives bullion some shelter. Physical demand also remains a cushion, even if higher prices have started to slow jewellery demand in some markets. In short, the market is bruised, but not broken.

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What can the Market do next?

Kotak Securities has been watching MCX Gold August futures closely. The original note flagged nearby support and resistance levels, which means traders are still treating this as an active battle zone rather than a dead end. That fits the wider picture too. Gold has been swinging hard this year, moving from record highs to sharp corrections and back again as rates, oil, the dollar, and geopolitical stress keep pulling the price around.