Gold Prices Dip Below Rs 1,28,000 Amid Global Profit-Booking

Gold prices in India experienced a sharp decline today, October 22, 2025, continuing a four-day losing streak and offering some relief to consumers. This drop comes after a period of high prices leading up to the Dhanteras and Diwali festivities. Market analysts attribute the recent decline to investors cashing out profits following a robust rally.

On the Multi Commodity Exchange (MCX), December gold futures traded at Rs 1,28,000 per 10 grams, a decrease of Rs 271 or 0.21 percent compared to the previous close. Similarly, silver futures also softened, falling by Rs 327 or 0.22 percent to Rs 1,50,000 per kilogram.

Current Gold Rates in Major Cities

While prices are fluctuating, here’s a snapshot of gold rates in major Indian cities:

• Delhi NCR: 24K gold is at ₹13,072 per gram, while 22K gold is at ₹11,984 per gram.
• Mumbai: Gold prices are ₹13,060 per gram (24K) and ₹11,971 per gram (22K).
• Chennai: Festive demand has kept prices slightly elevated at ₹13,085 per gram for 24K gold and ₹11,995 for 22K gold.
• Hyderabad: 24K gold is at ₹13,070 per gram, and 22K gold is at ₹11,982 per gram.
• Bengaluru: Gold is quoted at ₹13,074 (24K) and ₹11,986 (22K) per gram.

It's worth noting that Chennai recorded the highest price for 22-karat gold among the major metros, trading at Rs 11,700 per gram, followed closely by Delhi at Rs 11,675. A consistent price of Rs 11,660 was observed across Mumbai, Bengaluru, Kolkata, Pune, and Hyderabad. Ahmedabad stood slightly above the national average with a rate of Rs 11,665 per gram.

Factors Influencing the Price Drop

The dip in gold prices can be attributed to a combination of global and domestic factors:

• Global Profit-Booking: International spot gold prices tumbled due to heavy profit-booking after reaching record highs. Spot gold plunged as much as 6.7% from the day's high of $4,375 to below $4,080.
• Stronger Dollar: The dollar index climbed 0.4% to above 98.9, making gold more expensive for holders of other currencies.
• Easing Safe-Haven Demand: With some stability returning to the market, the demand for gold as a safe haven has slightly decreased.
• Federal Reserve's Rate Cuts: Expectations of further easing by the Federal Reserve have played a role in supporting gold prices. The Fed lowered rates by 25 basis points at its last meeting, and two more cuts of the same size are expected before the end of 2025.

Market Outlook

Despite the recent correction, gold remains up about 56% this year. Analysts suggest that macroeconomic and geopolitical uncertainties are likely to continue driving demand for gold. Factors such as Donald Trump's return to the White House and renewed trade war fears, ongoing geopolitical tensions, and the risk of a U.S. government shutdown contribute to this uncertainty. Central banks' buying and a weaker dollar also support gold prices.

However, a more restrictive shift in the Federal Reserve's monetary policy and a sharp decline in jewelry demand could undermine gold prices.

As the wedding season approaches in India, demand for gold jewelry is expected to rise. This, coupled with the current price dip, may encourage over-the-counter gold purchases across major cities.