Gold and silver prices retreat from record highs as global markets witness heavy profit booking. (Photo: ANI)
After a record-breaking rally, global gold and silver prices have taken a sharp hit this week, triggering concerns among Indian investors about whether domestic bullion rates will follow suit when trading resumes today.
On Wednesday, spot gold extended its decline to around $4,004 per ounce, down nearly 7% from its record high of $4,381.21 on Monday. This comes after gold logged its steepest two-day fall in over a decade, fueled by heavy profit booking as investors cashed in on historic gains. Silver too tumbled over 2% to $47.6 per ounce, after a 7% plunge earlier in the week.
According to Tim Waterer, Chief Market Analyst at KCM Trade, profit-taking has snowballed in recent sessions. “There’s high temptation for traders to take profit at price levels which have never been seen before in the gold market,” he told Bloomberg.
The Multi Commodity Exchange (MCX) remained closed on Wednesday for the Diwali-Balipratipada holiday, meaning Indian investors have not yet reacted to the global crash. However, analysts expect a sharp correction when trading resumes in the evening session today (October 23).
As of the last close, December gold futures on MCX were at ₹1,28,000 per 10 grams, down ₹271 or 0.21%. Silver futures stood at ₹1,50,000 per kilogram, lower by ₹327 or 0.22%. This marks a decline of over ₹4,000 from the recent record peak of ₹1,32,294 per 10 grams, reflecting a 3% dip in domestic prices.
Experts say today’s session could open weaker as traders track the global sell-off. However, physical demand during the Diwali-Dhanteras festival season is expected to provide some cushion, especially as buyers view dips as a buying opportunity.
The recent slump in global bullion prices is largely attributed to profit booking, easing geopolitical tensions, and renewed optimism in trade talks between the US and China.
US President Donald Trump recently expressed optimism about reaching a fair trade deal with Chinese President Xi Jinping, reducing the metal’s safe-haven appeal. Additionally, signs of progress in India-US trade negotiations have further lifted investor sentiment toward risk assets.
Market attention is also turning to macroeconomic cues, particularly the US inflation data and the Federal Reserve’s upcoming interest rate decision. Expectations of a 25-basis-point rate cut next week and another in December could still lend medium-term support to gold.
Despite the short-term correction, analysts believe the long-term outlook for gold and silver remains strong, supported by central bank buying, geopolitical uncertainties, and a weaker US dollar.
“Corrections like this are natural after months of rapid gains,” say commodity experts. “As festival demand peaks in India and investors await fresh cues from the Fed, gold may stabilize before resuming its upward trend.”
For now, Indian investors are advised to watch MCX opening trends closely today. If global weakness deepens, MCX gold and silver prices may open lower, but any dip could attract fresh buying ahead of the year-end.
ALSO READ: Gold Price Today: Why Gold Is Falling Sharply, Record Breaking 12-Year Plunge, Analysts Explain
Sofia Babu Chacko is a journalist with over five years of experience covering Indian politics, crime, human rights, gender issues, and stories about marginalized communities. She believes that every voice matters, and journalism has a vital role to play in amplifying those voices. Sofia is committed to creating impact and shedding light on stories that truly matter. Beyond her work in the newsroom, she is also a music enthusiast who enjoys singing.
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