Despite the recent fall both the precious metals remain significantly higher year-to-date, supported by Fed easing expectations and lingering safe-haven demand. | Photo Credit: istock.com
The jewellery demand in India is also expected to ease with peak Dhanteras and Diwali season coming to an end.
Despite the recent fall both the precious metals remain significantly higher year-to-date, supported by Fed easing expectations and lingering safe-haven demand.
Despite the spike in gold prices globally, the rise in India was capped as rupee appreciated against dollar.
In the international markets, gold plunged 6.2 per cent to about $4,100 an ounce and silver dropped over 5 per cent below $50 and ounce, marking their sharpest one-day declines in years after both metals recently hit record highs.
The sell-off was driven by heavy profit-taking following strong rallies in both metals. This apart, the dollar strengthened against key currencies adding to downward pressure on precious metals.
The safe-haven demand also eased amid improving global market sentiment.
Optimism over easing US–China trade tensions grew ahead of the US President Donald Trump and Chinese President Xi Jinping meeting next week aimed at resolving tariff disputes.
Expectations of a resolution to the US government shutdown and anticipation of Friday’s delayed US inflation data also affected sentiment.
Markets continue to price in a 25 bps Fed rate cut next week, with another possible cut in December.
Silver also faced added pressure after last week’s liquidity crunch in London’s silver market triggered a global rush for physical supply.
In MCX, precious metals witnessed mild profit-booking with gold prices falling by ₹271 or 0.21 per cent to close at ₹1,28,000 per 10 grams, while silver slipped ₹327 or 0.22 per cent to ₹1,50,000 per kg.
Published on October 22, 2025
