Gold Prices Retreat: Profit Booking Snaps Rally on 16 December 2025

Indian gold markets experienced a significant pullback today, December 16, 2025, as a four-day record-breaking rally came to an end. After reaching unprecedented highs, the yellow metal saw substantial profit booking across the board, leading to a notable correction in prices for both investors and jewelry shoppers.

Retail gold prices in India saw a sharp decline, with some reports indicating a slip of up to ₹1,700 per 10 grams, and for 24-carat gold, a slash of ₹1,520. This brought prices down from recent peaks, though specific rates varied across major cities like Delhi and Mumbai for 18K, 22K, and 24K gold. On the Multi Commodity Exchange (MCX), however, gold futures showed a more mixed picture, with some contracts reportedly rising by ₹1,150 per 10 grams, possibly reflecting intraday volatility or specific contract movements. Adding to the domestic price dynamics, the Indian Rupee's depreciation against the US Dollar meant that while international gold might have seen a larger dip, its rupee-denominated equivalent experienced a relatively steeper rise or a cushioning effect against a sharper fall.

The primary driver for today's price correction was widespread profit booking by investors, especially ahead of crucial US economic data releases. Despite this, underlying support for gold came from increasing odds of a US Federal Reserve rate cut as early as January, following recent jobs data. Conversely, speculative buzz around a potential Russia-Ukraine peace deal contributed to the downward pressure, as geopolitical tensions typically fuel gold's safe-haven appeal. Meanwhile, gold imports into India were reported down by 17%, and silver imports by 33%, raising questions about future supply-demand dynamics and their potential impact on prices.

For Indian investors and jewelry shoppers, today's market action presents a complex scenario. While the sharp fall from record highs might tempt buyers, experts advise caution and strategic entry. With the market under pressure from profit booking and peace deal hopes, but supported by a weak rupee and potential Fed rate cuts, the outlook remains volatile. It might be prudent to observe further market consolidation and look for opportune dips to accumulate gold, rather than rushing into purchases immediately, as the market navigates these mixed signals.