Gold Prices Dip as Profit-Taking Emerges on 16 January 2026

Gold prices witnessed a notable dip on Friday, January 16, 2026, as the precious metal retreated from its recent record highs. The primary drivers behind today's correction appear to be a wave of profit-taking by investors and an easing of geopolitical tensions, which reduced gold's appeal as a safe-haven asset. Both 24-carat and 22-carat gold rates saw a decline across major Indian cities like Delhi and Mumbai, reflecting the broader market sentiment.

On the Multi Commodity Exchange (MCX), gold futures slipped significantly, with prices falling by ₹720 per 10 grams. Silver also experienced a sharp decline, plunging by ₹7,000 per kilogram, indicating a broader retreat in the precious metals segment. Globally, gold prices slipped by approximately 0.25%, influenced by strong US economic data that bolstered the dollar and subsequently made dollar-denominated gold more expensive for international buyers. Furthermore, fading hopes for swift interest rate cuts by central banks also contributed to the downward pressure on gold.

Despite the global and domestic price correction, the underlying strength of the Indian gold market remains evident. According to Kavita Chacko of the World Gold Council, India's gold market experienced a standout year in 2025, with December ETF inflows reaching an all-time high, underscoring enduring demand strength. This sustained local interest is further highlighted by the fact that India's premium over Dubai gold prices continued to remain high today, suggesting robust domestic buying interest even as international prices softened.

For investors and jewelry shoppers, today's dip presents a nuanced picture. While some analysts question whether gold prices can sustain near record highs without continued safe-haven demand, the strong domestic appetite in India provides a floor. The market is now looking ahead to February's gold rate predictions, with discussions emerging around whether a "sell on rise" strategy makes sense. As global financial cues and domestic demand dynamics continue to evolve, potential buyers and sellers should closely monitor these factors to make informed decisions in the coming weeks.