October 25, 2025 : Rates for both gold and silver in India resumed their downward trend on October 24, slipping more than 2% in early trade as investors booked profits and global cues weighed on precious-metal demand. According to market quotes, gold futures on the Multi Commodity Exchange (MCX) dropped to around ₹121,400 per 10 grams, while silver futures slid to about ₹145,080 per kg.
Why the Drop?
Several key factors are driving the decline:
- Profit booking following an extended rally: Gold and silver have seen sharp gains in 2025—gold up ~60% and silver ~67% year-to-date. The recent correction is widely viewed as a necessary consolidation.
- Easing of trade tensions and risk-off momentum: News of upcoming diplomatic engagements between the U.S. and China has reduced the immediacy of the safe-haven bid for precious metals.
- Stronger U.S. dollar and prospective Fed policy shifts: As inflation data came in slightly softer than expected, markets are watching the U.S. central bank closely. A firmer dollar typically weakens non-yielding assets like gold.
- Domestic demand easing post-festival season: In India, the rush around Dhanteras and festive purchases is tapering, reducing spot gold and silver demand.
Analyst Outlook & Target Levels
- Near-term outlook: Jateen Trivedi of LKP Securities expects gold to remain volatile with a marginal negative bias in the short term, forecasting a range of ₹118,000-₹125,500 per 10 g until clarity emerges on global macro and trade triggers.
- Technical levels (USD markets): Analysts at The Economic Times flagged support for gold near US$4,055-4,005/oz, with immediate resistance in the US$4,135-4,160/oz band. A break below support could open down-side risk toward US$3,838/oz.
- Long-term targets remain bullish: While short-term pressure exists, major banks remain confident in metals over the medium term. For example, Bank of America (BoA) raised its 2026 gold target to US$5,000/oz and silver to US$65/oz—even as it cautioned investors about the potential for interim pull-backs.
What This Means for Investors
- Short-term traders should treat the current drop as a high-volatility phase: Many analysts recommend using partial profit-booking or hedging positions if already invested.
- Long-term investors seeking gold or silver exposure can consider systematic accumulation, rather than lump-sum buys at recent highs. Dips in the range of 5-10% could offer better entry points.
- Buyers for ritual or personal use: The dip is somewhat favourable for such buyers. But given price swings, demand should guide purchases rather than speculation.
Risks That Could Influence the Trend
- A sharp uptick in U.S. inflation or renewed geopolitical shocks could reverse the pull-back and reignite safe-haven flows into metals.
- Conversely, a strong economic recovery or aggressive rate-hiking by central banks might dampen metal demand further.
- Domestic factors in India—such as spurt in jewellery demand or import duty changes—can also add volatility.
Final Word
While the recent more than 2% drop in gold and silver may signal a short-term correction, the medium-to-long-term fundamentals for metals remain intact. Investors are advised to watch key global data points, currency moves, and commodity flows, and align their metal exposures with individual time horizons and risk profiles.
Summary
Gold and silver prices dropped over 2% amid profit-booking, easing trade tension and stronger dollar. Analysts expect short-term consolidation while reaffirming bullish medium-term outlooks with higher targets ahead.