Whalesbook
Gold and silver prices saw a significant downturn across both Indian and international markets after the Diwali festive period in October 2025. In Ahmedabad, the spot rate for gold on the Multi Commodity Exchange (MCX) decreased by ₹8,376, or nearly 6.4%, from ₹1,30,233 per 10 grams on October 17 to ₹1,21,857 on October 23. Silver prices also experienced a sharp fall, dropping by ₹25,659, or about 15%, from ₹1,71,217 per kg on October 17 to ₹1,45,558 on October 23.
Internationally, spot gold fell 6.1% to $4,092/ounce from $4,356/ounce, and spot silver dropped 7.1% to $48.74/ounce from $52.49/ounce on Thursday.
Vijay Kuppa, CEO of InCred Money, cited profit-taking after a recent spike, a firmer US dollar, and easing US-China trade tensions reducing safe-haven demand as primary reasons. He also noted that increased trading margins on exchanges like MCX might have led to the unwinding of leveraged positions.
Colin Shah, MD of Kama Jewellery, echoed these views, terming the fall a 'price correction' after a significant rally and expecting it to be temporary, with long-term prospects remaining strong due to global economic triggers.
Despite short-term fluctuations, structural drivers support the metals. Central banks continue to diversify reserves into gold, and silver remains crucial for industrial applications like EVs, solar panels, and electronics.
Investment advice suggests maintaining a small portfolio allocation to both gold and silver, with gold offering more stability. Investors are encouraged to adopt a 'buy the dip' strategy, while consumers can leverage the price softening for jewellery purchases.
Impact
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