How Can Gold Slip Again – and Why Buyers Fear Rs 80,000 Price Becoming New Reality

Gold prices may drop below Rs 80,000 per sovereign as Russia reconsiders its dollar use and BRICS nations scale back purchases. Analysts warn of a gradual correction after months of volatility, reshaping India’s bullion market outlook.

Forecasts suggest gold prices could soon fall below Rs 80,000 per sovereign, marking a significant correction after months of volatility. Analysts point to shifting global economic conditions and changes in Russia’s trade strategy as key drivers behind the expected decline.

Gold has surged since last September, reaching historic highs on January 29 when one gram touched Rs 16,800 and a sovereign was priced at Rs 1,34,400. However, the following day saw a sudden drop of more than 10%, and prices have fluctuated sharply over the past two weeks.

Experts believe the factors that pushed gold higher are now reversing. Russia, which had limited its use of the US dollar in international trade due to tensions with Washington, is reportedly considering resuming full dollar transactions. If Moscow begins selling its gold reserves to secure dollars, global prices could fall sharply.

Russia’s Role And BRICS Impact

Analysts also highlight the potential end of the Russia‑Ukraine conflict through a US‑Russia trade agreement as another factor that could ease demand. While no official denial has come from Moscow, the reports have added weight to predictions of a correction.

BRICS nations — China, India, Brazil and South Africa — have collectively accounted for nearly half of global gold purchases in recent months. Their buying spree was partly in response to US trade policies. However, indications suggest they may now reduce purchases, further softening demand.

Bloomberg has projected that gold prices in India could settle between Rs 70,000 and Rs 80,000 per sovereign. Analysts caution that the decline will be gradual rather than sudden, with stabilization expected by the end of 2027.

For buyers, the correction offers some relief after months of record highs that placed gold beyond the reach of many households. The prospect of prices easing below Rs 80,000 could revive demand in India’s bullion market, traditionally one of the largest consumers of gold worldwide.

While uncertainty remains, the shift in Russia’s dollar policy and reduced BRICS demand are seen as pivotal in shaping the next phase of gold pricing. The coming months will determine whether the market stabilizes or continues to swing under global economic pressures.