Gold Prices Stable in India, ETFs Plunge Up to 12% After Record Highs

• Indian physical gold prices remained stable on Thursday (January 22) due to safe-haven buying and currency sensitivity.
• 24-carat gold in Mumbai traded at ₹1.56 lakh per 10 grams, while 22-carat gold was at ₹1.43 lakh, excluding GST and making charges.
• Gold ETFs experienced a sharp correction, with Birla Sun Life Gold ETF down 12% and others like Axis, Tata, Bandhan, DSP, HDFC, Nippon India, and LIC MF Gold ETFs falling 9-11%.
• The sell-off in ETFs is attributed to profit-taking and risk rebalancing after gold hit lifetime highs, and eased geopolitical concerns following US President Donald Trump's statements.
• Analysts suggest long-term drivers for gold remain, viewing the correction as an accumulation opportunity for disciplined investors.

Why It Matters: Physical gold prices in India held steady, but gold ETFs saw significant declines due to profit-taking.