If you are looking to invest in or increase your exposure, the recent correction in gold prices may have raised an important question: should you now, wait for a further fall, or sell existing holdings?
Gold has fallen around 5% so far this year in 2026, while it is down 13.6% over the last six months. According to TradingView, the gold spot price on 8 October stood at around $4,123.625 per ounce (currently trading around this level as of 5:01 PM).
Mirae Asset Mutual Fund, in its latest note, has outlined the levels at which the current correction could present an opportunity for investors.
What has led to the recent fall in gold prices?
According to Mirae Asset Mutual Fund, the sharp rise in US Treasury yields has been the primary driver of gold’s recent correction. The US 10-year Treasury yield has climbed to approximately 5.27%, increasing the opportunity cost of holding non-yielding assets.
While this repricing has resulted in near-term weakness, it believes gold continues to retain a substantial portion of the gains accumulated over the past several years.
Why does Mirae Asset MF remain positive on gold?
Mirae Asset MF continues to remain constructive on gold because of several structural demand drivers.
- Central bank demand remains robust: Central banks continue to buy gold to diversify their reserves. Central bank demand in 2026 is expected to remain around 700 tonnes, significantly above the 2010–2021 average of 470 tonnes.
- De-dollarisation continues to support demand: Emerging economies are diversifying their reserves and reducing reliance on the US dollar. Gold remains a preferred reserve asset because of its liquidity, store-of-value appeal and absence of sovereign credit risk.
- Geopolitical risks remain elevated: Ongoing risks related to energy security, trade routes and sovereign debt continue to reinforce gold’s role as a portfolio hedge.
- India’s festive demand could provide support: India is entering its seasonally strong demand period, with Navratri, Dussehra, Dhanteras, Diwali and the wedding season expected to support festive and wedding-related gold demand in 2026.
At what level does Mirae Asset MF see an opportunity to invest in gold?
Mirae Asset MF believes below $4,200 per ounce present a good opportunity to invest in gold. With the gold spot price currently around $4,123.625 per ounce, the price is below this level.
According to the fund house, the current correction appears cyclical rather than structural, although near-term volatility may remain elevated. It identifies elevated Treasury yields, higher-for-longer interest-rate expectations, a stronger US dollar, and profit booking following the strong 2025–26 rally as near-term headwinds.
For gold ETF investors, it remains constructive on gold over the medium to long term, viewing it as a portfolio diversifier and a hedge against inflation, geopolitical risks, and broader macroeconomic uncertainty.
“Gold’s recent correction appears to be driven by yields rather than a deterioration in long-term fundamentals,” Mirae Asset MF said.