Gold's journey over the past five years has been anything but steady, even though the headline direction was up for most of it. Global spot gold prices rose from an annual average of $1,801.87 per ounce in 2022 to a reported record peak of $5,595.46 in January 2026. By 25 October 2026, prices had reportedly fallen to around $4,000 per ounce, nearly 29 percent below that January peak. Friday's close, at $3,995.81, sits 26.1 percent below the all-time closing high of $5,405.00 set on 29 January 2026, in a 52-week range of $3,948.50 to $5,405.00.

What fuelled the rise

The volatility was fuelled by rising inflation, central-bank diversification and escalating geopolitical tensions, according to the five-year comparison. Gold held its place in households in India and elsewhere as jewellery, a traditional store of wealth and a financial safety net, and with the festive season approaching, including Dhanteras and Diwali, gold's appeal strengthens for small buyers. On the global front, gold prices fluctuate when there is economic uncertainty, as investors put money into gold as an investment to sell later.

What is pulling it back now

A stronger US dollar, oil-driven inflation, expectations of higher-for-longer US interest rates and investor profit-booking have weighed on prices. Gold is down 8.5 percent so far in 2026 and down 4.1 percent over the past week, while silver has fallen further, down 25.13 percent year to date to $53.90. The gold-silver ratio closed at 74.1, meaning one ounce of gold bought 74.1 ounces of silver.

For festive buyers, the big question is whether this dip offers relief or signals further volatility. The honest answer is that no one can know from a single week's close: the same forces that lifted gold for four years, inflation, central-bank buying and geopolitical risk, are still present, but so are the forces pulling it down, a firm dollar and higher-for-longer rates. This article is market reporting, not investment advice.