Delhi Sees Slight Dip in Gold Prices After Record Surge
New Delhi, October 16, 2025 – After scaling to record highs, gold prices in the national capital experienced a slight correction on Thursday, October 16, 2025. According to the All India Sarafa Association, the price of gold decreased by Rs 200, settling at Rs 1,31,600 per 10 grams. This marginal dip comes after a period of robust gains that saw gold reach an all-time high of Rs 1,31,800 per 10 grams in the previous trading session.
In the local bullion market, gold with 99.5 percent purity also saw a decrease of Rs 200, settling at Rs 1,31,000 per 10 grams, inclusive of all taxes. Despite this minor downturn, market analysts suggest that the underlying sentiment for the precious metal remains bullish.
Silver Shines Bright
While gold experienced a slight correction, silver prices witnessed a significant rebound. Silver prices surged by Rs 2,000, trading near their record high at Rs 1,84,000 per kilogram, inclusive of all taxes. Earlier in the week, silver had touched a record high of Rs 1,85,000 per kg.
Global Market Influences
In the international market, spot gold experienced a rise of nearly 1 percent, reaching an all-time high of $4,246.08 per ounce. This surge reflects investors seeking safe-haven assets amidst fiscal concerns in the United States and escalating global tensions.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, stated that gold's upward momentum was fueled by the ongoing US government shutdown, which delayed key economic data releases and heightened market uncertainty. According to Trivedi, the absence of fresh cues and persistent concerns over the US fiscal situation have bolstered safe-haven demand, driving gold prices higher.
Kaynat Chainwala, AVP Commodity Research at Kotak Securities, noted that investor sentiment is being influenced by expectations that the US central bank may implement two interest rate cuts later in the year to support economic growth. Spot silver was marginally up at $53.05 per ounce. The white metal had previously hit a lifetime high of $53.62 per ounce on Tuesday.
Factors Influencing Gold Prices
Several factors influence gold prices in India, including:
- Inflation: Rising inflation rates often lead to increased gold prices, as gold is considered a hedge against inflation.
- Gold Reserves: The Reserve Bank of India's (RBI) gold reserves can impact gold rates.
- Jewelry Market: Demand for gold increases during wedding and festive seasons.
- Import Duties and Taxes: Government levies such as import duties and Goods and Services Tax (GST) on imported gold affect prices.
- Rupee Exchange Rate: The USD-INR exchange rate influences local prices since India imports gold.
- Global Factors: Gold prices are also affected by global supply and demand, mining costs, central bank policies, currency exchange rates, geopolitical uncertainty, and investor sentiment.
Market Outlook
Commodities market experts suggest that despite occasional profit booking, the underlying tone for gold remains bullish, driven by a combination of macroeconomic and geopolitical factors. While short-term fluctuations are possible, gold is expected to maintain its appeal as a safe and valuable investment.
