After a period of unprecedented highs, gold prices have experienced a slight dip on October 3, 2025. This correction comes after gold surged to record levels, fueled by a combination of factors including geopolitical tensions, expectations of Federal Reserve rate cuts, and robust central bank purchases.

Global Market Overview

Globally, gold fell to $3,854.14 USD/t.oz on October 3, 2025, a 0.05% decrease from the previous day. However, over the past month, gold prices have risen by 8.66%, and they are up 45.29% compared to the same time last year. Despite the recent dip, forecasts estimate gold to trade at $3,942.33 USD/t.oz by the end of the current quarter and $4,055.01 in 12 months. Spot prices are subject to constant fluctuations influenced by investment supply and demand. As of October 2, 2025, the live gold spot price was $3,865.11 per ounce.

The U.S. government shutdown has also contributed to the volatility, threatening to delay key economic releases and potentially leaving the Federal Reserve with limited data for upcoming policy decisions. This uncertainty has further fueled safe-haven demand for gold.

Factors Influencing Gold Prices

Several factors contribute to the fluctuation of gold prices:

• Interest Rates: Higher interest rates can make holding gold relatively more expensive because gold does not offer dividends or interest. Lower interest rates, however, may increase the appeal of gold to investors.
• Monetary Policy: Expectations of Federal Reserve rate cuts often drive gold prices higher.
• Geopolitics: Geopolitical tensions and trade tensions tend to increase demand for gold as a safe-haven asset.
• Inflation and Deflation: Gold is often used as a hedge against inflation. During times of inflation, investors tend to buy gold to protect their purchasing power. Deflation, conversely, can push gold prices down as confidence in currency strength returns.
• Supply and Demand: The limited supply of gold means that changes in demand significantly impact its price. Demand is often influenced by jewelry markets, particularly in countries like China and India, and by events like the wedding season in India.
• Currency Markets: Fluctuations in currency values, particularly the U.S. dollar, can impact gold prices. A stronger dollar can make gold more expensive for foreign investors, potentially driving prices down, while a weaker dollar can make gold less expensive, potentially driving prices up.

Gold Rates in India

On October 3, 2025, gold rates in India experienced a slight decrease after a five-day record-breaking rally. The price of 24-karat gold in India fell by ₹55 per gram to ₹11,869. Similarly, the 22-karat gold rate declined by ₹50 to ₹10,880 per gram, and the 18-karat gold rate slipped by ₹38 per gram to ₹8,902.

Here are the gold rates in major Indian cities on October 3, 2025:

• Bangalore: ₹11,804 per gram (24 Carat), ₹10,820 per gram (22 Carat), ₹8,853 per gram (18 Carat)
• India (average): ₹11,868 per gram (24 Carat), ₹10,879 per gram (22 Carat), ₹8,901 per gram (18 Carat)

Silver Rates in India

Unlike gold, silver prices in India increased on October 2. The silver rate in India rose to ₹153 per gram and ₹153,000 per kilogram, driven by increasing industrial demand in sectors such as electronics, solar energy, and automotive.