Gold buying in October: Current prices offer better entry point than start of 2026, says Tata MF

"For investors who missed the earlier rally, current levels offer a significantly better entry point than at the start of the year, while the medium-term outlook continues to be supported by central bank demand, fiscal risks and geopolitical uncertainty," Tata Mutual Fund said.

The report noted that the yellow metal has undergone a significant correction in 2026, creating a more attractive entry point for long-term investors.

"Gold peaked at approximately US$5,595/oz in January 2026. It is currently trading around US$4,138/oz. This represents a correction of approximately 26% from the peak," Tata MF said.

What is behind the correction?

Tata MF said that the correction appears to be driven more by macro factors than by any deterioration in gold's structural fundamentals. "The recent correction has largely been driven by higher US treasury yields and a stronger US dollar. Historically, these would be negative for gold. However, the more important observation is that despite these headwinds, the structural drivers that pushed gold higher over the last three years remain intact."

These drivers, the report said, are backed by "continued support from central bank buying, fiscal concerns, geopolitical uncertainty and reserve diversification trends."

Meanwhile, retail gold prices in India on Monday were around ₹14,424 per gram for 22 karat, ₹14,779 for 999 karat and ₹13,153 for 20 karat, according to Indian Bullion and jewellers Association (IBJA). At the start of the month on October 1, the price of 999 karat gold was ₹1,48,138 per 10 gram.

On MCX, gold was down 0.47% to ₹1,47,170 at the time of writing on Monday, after opening the day at ₹1,47,490.