Market Overview
After touching record highs, gold and silver prices have witnessed a steep fall, and experts warn that the correction may not be over yet. Following Tuesday’s historic single-day slump in global markets, analysts anticipate another sharp decline in India’s bullion market on Thursday, October 23. However, they also maintain that this downward phase will likely be short-lived.
Record Highs Followed by Rapid Decline
On October 17, 2025, gold and silver prices on the Indian Multi Commodity Exchange (MCX) reached new peaks. Since then, silver prices have dropped by nearly ₹20,000 per kilogram, while gold has fallen by around ₹4,000 per 10 grams. Experts suggest that the correction could deepen further as international bullion prices continue to weaken for a second consecutive day. With MCX closed due to the festive season, the Indian market is expected to open with additional losses once trading resumes.
Global Market Sees Sharpest Drop in Over a Decade
According to Bloomberg, gold witnessed a dramatic 6.3% intraday fall on Tuesday, while silver plunged 7.1%, marking the steepest single-day decline in 12 years. The selling pressure continued into Wednesday, as both metals experienced their sharpest intraday losses in more than five years amid aggressive profit-booking by traders.
Prices Dip Below Key Levels
In London trading, gold slipped below $4,100 per ounce, extending Tuesday’s 5% drop. Silver mirrored the trend, testing short-term support levels under heavy selling pressure. By Wednesday, gold had declined to $4,046.96 per ounce in the international market, while silver dropped to around $48 per ounce.
Post-Diwali Correction and Profit Booking
Market experts attribute the latest fall to profit-taking activity that followed the Diwali festive season, traditionally a period of strong gold demand in India. Rajesh Rokde, President of the All India Gems and Jewellery Domestic Council, noted that gold had rallied sharply over the past four months—from approximately $3,300 per ounce to $4,400 per ounce—making a correction inevitable.
Expert Advice: Stay Patient and Buy on Dips
Analysts recommend patience for investors holding gold or silver. Many suggest that those planning to enter the market can consider buying on dips rather than panicking during short-term volatility. In India, gold prices have slipped from ₹1.3 lakh per 10 grams to around ₹1.28 lakh, while silver has fallen about 12% since Friday. Despite this correction, both metals have delivered strong gains this year—silver up nearly 85% and gold over 70%.
Outlook: Volatility May Persist, but Long-Term Sentiment Remains Positive
Ajay Kedia, Founder and Director of Kedia Commodities, cautioned that price volatility could continue in the near term due to global geopolitical factors. He highlighted that upcoming meetings involving Donald Trump, China, and Russia could influence market sentiment. Nevertheless, Kedia emphasized that the long-term outlook for gold remains bullish, as central banks continue large-scale gold purchases. Even if prices dip another $50–$100, he believes there is limited downside potential given the strong underlying demand.
