Gold Prices Slip After Fed’s Big Move- Here’s What’s Happening
Gold prices took a sharp fall on October 30, 2025, right after the US Federal Reserve’s latest policy announcement. On the Multi Commodity Exchange (MCX), gold dropped below ₹1.19 lakh per 10 grams, a big dip after weeks of steady gains.
So, what’s behind the fall? Experts say investors are booking profits after a long rally, and the easing tensions between the US and China have made traders shift toward riskier assets like stocks instead of safe havens like gold.
In simple terms, with trade talks improving and the Fed hinting at fewer rate cuts, investors see less need to hold on to gold for safety.
Gold Prices Lose Shine As Fed Plays Cautious and US-China Peace Lifts Market Mood
Gold prices are cooling off after their dazzling rally. On October 30, MCX gold opened 1.27% lower and kept sliding through the morning, dipping below ₹1.19 lakh per 10 grams. The sparkle faded as the US Federal Reserve’s cautious stance and improving US-China trade ties made investors swap their gold for riskier bets like stocks.
- Fed’s Rate Cut: Cool Tone Hits the Glitter
The Fed hinted at fewer rate cuts ahead, and that instantly took some shine off gold. With no aggressive stimulus in sight, investors are treading carefully and eyeing the next Fed move. - Geopolitics Take the Edge Off
A stronger US dollar, calmer trade tensions, and profit-booking after gold’s two-month rally added to the selling pressure. Back home, a stronger rupee, fewer RBI gold purchases, and the post-festive lull also dragged prices down. - Central Banks Still Holding the Fort
Don’t count gold out just yet, central banks, including India’s RBI, are still stocking up. Their steady buying continues to offer long-term support, keeping hopes alive for a glittery comeback.
Will Gold Prices Keep Falling Or Glitter Again? Experts Weigh In
After slipping below ₹1.19 lakh per 10 grams, investors are asking the golden question, is the shine fading for good, or just taking a breather?
Analysts say the short-term may stay rocky, but the long-term story still sparkles with promise. Here’s what’s shaping the outlook:
Short-Term Outlook- A Bumpy Ride Ahead
- Expect more swings: Prices could stay volatile as traders react to fresh global economic data, the next US Fed decision, and ongoing geopolitical shifts.
- Fed factor: If the Fed holds off on aggressive rate cuts, gold may stay under pressure, at least for now.
- Investor mood: With easing US-China tensions and a stronger dollar, investors are chasing riskier assets, leaving gold temporarily out of favor.
Long-Term Outlook- The Glitter Isn’t Gone
- Inflation’s silent push: Persistent inflation could drive renewed demand for gold as a hedge.
- Central banks stacking up: From the RBI to the PBOC, steady buying by central banks adds long-term support.
- Big bank bets: Analysts from JPMorgan and Goldman Sachs predict gold could shine past $5,000 per ounce by 2026, proving that every dip may just be another buying opportunity.
What Is Causing The Recent Slump In Gold Price?
- Calming US-China Trade: Schools of thought suggest investors are selling gold and buying equities in hopes of an enduring trade ceasefire.
- Profit-Taking: Traders are cashing in money at high prices after a significant rally.
- Strengthening US Dollar: A strengthened dollar makes gold more expensive for other countries, which decreases the demand for gold in the world market.
- Fed Position: Investors are also moving cautiously before the Federal Reserve gives more signals on the easing of the economy.
What Should Investors Do While The Gold Price Is Falling?
The recommendation given by analysts is that long-term investors should not sell out and see this correction period as an opportunity to buy gold when it is at its lowest instead of perceiving this as a setback. The latest pullback may be good for people who have patience since the fundamental forces of the metal, such as central bank purchases and possible rate reductions, are still on the side of the metal.
In the meantime, short-term traders must monitor market clues such as actions of central banks, economic news around the world, and changes in geopolitics, which may lead to sudden price changes in gold and provide them with an opportunity to trade in the short run amid volatility.
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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