New Delhi, Nov. 5 -- Dhanteras is considered one of the most auspicious occasions to buy gold. This year, however, investors are approaching the festive season amid a sharp correction in the yellow metal. Domestic gold prices are hovering around Rs.1,42,000 per 10 grams, down more than 20% from their peak of nearly Rs.1,80,000.

Geopolitical tensions in the Middle East, a stronger US dollar and elevated interest rates have weighed on gold prices, raising questions about the sustainability of the metal's long-term bull run. However, continued central bank purchases and sustained inflows into gold exchange-traded funds (ETFs) could support the outlook, according to an Axis Direct report.

Despite the recent correction, gold has delivered a ...