Gold prices decreased by ₹218, settling at ₹1,21,290 per 10 grams on Friday, amid a volatile trading session on the Multi Commodity Exchange (MCX). This decline followed a reassessment by investors of the Federal Reserve’s cautious outlook on prospective rate cuts, along with a temporary easing of tensions in US-China trade relations.
Specifically, futures for gold scheduled for December delivery fell by ₹218 or 0.18%, with a trading volume of 13,223 lots. In a similar trend, silver futures for December delivery also dropped by ₹410, or 0.28%, reaching ₹1,48,430 per kilogram, based on 20,217 lots traded on the MCX.
In the international markets, Comex gold futures for December delivery were trading slightly higher at USD 4,020.67 per ounce, while silver prices slipped by 0.37%, landing at USD 48.43 per ounce. Jigar Trivedi, a Senior Research Analyst at Reliance Securities, indicated that gold prices were maintaining levels around USD 4,020 per ounce, on track for a second consecutive weekly loss due to diminishing expectations regarding Federal Reserve rate cuts and the implications of a US-China trade agreement.
Trivedi noted that the US and China had reportedly reached a trade truce, entailing a one-year deal concerning rare earth minerals and critical materials. This agreement included a 10% tariff reduction on fentanyl by President Donald Trump and an understanding for Beijing to limit production and resume US soybean purchases. However, uncertainty remains regarding the sustainability of this deal.
Federal Reserve Chair Jerome Powell suggested that a further rate cut in December is not guaranteed, which has contributed to a strong dollar approaching a three-month high. This stronger dollar made gold less affordable for foreign buyers.
Despite Friday’s decline, gold remained poised for a monthly gain, showing a nearly 50% rise year-to-date, driven largely by strong demand from central banks. According to the World Gold Council (WGC), global central banks acquired 220 tons of gold in the third quarter of 2025, marking a 28% increase from the previous quarter, with Kazakhstan leading the buying and Brazil making its first purchase in over four years.
In India, however, gold demand fell by 16% in volume during the July-September quarter of 2025, as record-high prices dampened consumer interest. Total gold demand decreased to 209.4 tons from 248.3 tons the previous year. Notably, gold jewelry demand in India—accounting for the majority of consumption—dropped 31% to 117.7 tons from 171.6 tons. Despite this, the value of jewelry purchases remained stable at approximately ₹1,14,270 crore as consumers adjusted to elevated prices.
Investment demand for gold, on the other hand, showed remarkable strength, increasing 20% in volume to 91.6 tons and surging 74% in value to ₹88,970 crore, up from ₹51,080 crore, according to the WGC. Sachin Jain, Regional CEO for India at the World Gold Council, emphasized a growing commitment among Indian consumers to view gold as a long-term store of value.
Published on October 31, 2025.
