Gold corrects 26% from January peak as analysts advise caution

Gold prices experienced a sharp drawdown of over 26% from a January record high of $5,595 per ounce down to around $4,100 per ounce.

The recent drop from $4,700 to $4,250 in mid-September was driven by higher US Treasury yields, a firmer dollar, and firmer inflation readings pushing Fed hike expectations near 90%.

Analysts suggest investors avoid lump-sum buying and instead consider staggered purchases over the next few weeks ahead of Diwali while watching for support around $3,950 per ounce.