Gold Prices Plunge in India: Is This the Right Time to Buy?
Gold drops over 1% as dollar strengthens.
Gold and silver prices in India took a hit on Monday, October 27, 2025, falling over 1% as a stronger U.S. dollar and easing U.S.-China trade tensions dampened demand for safe-haven assets. In Mumbai, 24-carat gold was priced at Rs 1,24,480 per 10 grams, while 22-carat gold stood at Rs 1,15,140 per 10 grams, with silver trading at Rs 1,54,900 per kg. On the Multi Commodity Exchange (MCX), gold for December 5, 2025, contracts fell 1.04% to Rs 1,22,161 per 10 grams, and silver dipped 0.08% to Rs 1,45,878 per kg. Investors are now eyeing upcoming central bank meetings for clues on monetary policy, which could further influence gold’s trajectory.
Across key Indian cities, gold prices reflected the downward trend. In Delhi and Jaipur, 24-carat gold was quoted at Rs 1,24,630 per 10 grams, while 22-carat gold stood at Rs 1,14,250. Ahmedabad saw slightly lower rates at Rs 1,24,530 for 24-carat and Rs 1,14,150 for 22-carat. Cities like Pune, Mumbai, Hyderabad, Chennai, Bengaluru, and Kolkata recorded 24-carat gold at Rs 1,24,480 and 22-carat at Rs 1,14,100. These prices, excluding GST and making charges, were driven by global market dynamics and a stronger rupee, which curbed gold’s appeal.
Globally, spot gold dropped 0.7% to $4,082.77 per ounce, with U.S. gold futures for December delivery falling 1% to $4,095.80. Analyst Kyle Rodda from Capital.com attributed the decline to a surprise U.S.-China trade deal framework, which boosted market optimism and reduced gold’s safe-haven allure. “The heat has come out of the market, but gold’s support remains strong due to expectations of loose fiscal and monetary policies,” Rodda noted. Central bank buying and geopolitical uncertainties continue to bolster gold, though high U.S. interest rates are capping gains.
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In India, gold’s cultural and financial significance remains unmatched, especially during the ongoing wedding season following Diwali. Prices are influenced by international market rates, import duties, taxes, and exchange rate fluctuations. Despite the dip, steady demand from jewellers and investors is keeping the market resilient. Analysts predict gold may trade in a tight range this week, with support at Rs 1,24,000 and resistance near Rs 1,30,000 per 10 grams, depending on global cues and currency movements.
The recent correction offers a potential buying opportunity for investors, but caution prevails. A weaker dollar or renewed geopolitical tensions could push gold higher, while firm U.S. yields and risk-on sentiment might keep prices in check. As market participants monitor global developments, gold’s role as a safe-haven asset and cultural staple in India ensures it remains a focal point for traders and buyers alike.
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