Bhubaneswar, October 25: After soaring to record highs during Dhanteras and Diwali, both gold and silver prices have entered a phase of steady decline over the past few days. Investors who bought heavily during the festive season are now booking profits, leading to a correction in the precious metals market.
Prices See Continuous Decline
On Friday, the price of 22-carat gold dropped by ₹650 per 10 grams, bringing it down to around ₹1,14,000, while 24-carat gold slipped by ₹710, now trading near ₹1,24,370 per 10 grams. Silver prices also fell sharply by ₹4,000 per kilogram, settling at around ₹1,70,000.
Since October 18, the market has seen a continuous fall in gold rates. On October 17, 22-carat gold had touched a record high of ₹1,21,170 per 10 grams, while 24-carat gold reached ₹1,32,770. Since then, prices have fallen by ₹7,700 and ₹8,400 respectively. Silver, too, which hit ₹2,07,000 per kg on October 15, has dropped by a massive ₹37,000, mirroring the global trend.
What’s Driving the Price Drop?
Market analysts attribute the recent correction to profit-booking by investors. Many who purchased gold and silver during the festive surge are now selling their holdings to secure gains.
Experts also point to several global factors influencing the price dip:
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Strengthening of the US dollar against major currencies, making gold more expensive in other markets.
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Easing geopolitical tensions, reducing the safe-haven demand for precious metals.
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Improved global trade outlook as the US engages in renewed trade agreements with key economies.
Together, these factors have led to nearly a 10% fall in gold and silver prices in the international market over the past few weeks.
Analysts See a Temporary Correction
While the short-term trend shows a decline, experts believe the fall could be temporary. They anticipate prices may rebound once the global market stabilizes.
“Such corrections are common after a sharp festive-season rally. Once international cues improve, gold could again test higher levels,” said a senior bullion analyst in Mumbai.
Forecasts suggest that in the coming months, gold could cross ₹2 lakh per 10 grams, while silver may rise again to around ₹1.45 lakh per kilogram, if inflationary trends persist and central banks continue buying gold as a hedge against currency volatility.
What It Means for Buyers
For retail buyers and jewellers, the current dip presents an opportunity. With the wedding season approaching, lower prices could revive demand for jewellery and coins in the domestic market.
Financial advisors, however, caution investors to wait for price stabilization before making large purchases, as global cues remain volatile.
After an extraordinary rally during the festive season, gold and silver prices are witnessing a correction due to profit-taking and global market movements. Experts see this as a temporary phase before prices eventually firm up again.
For investors, the message is clear — those who missed buying during Diwali may find the coming weeks a golden opportunity.