Gold prices faced a steep decline as the yellow metal suffered from profit booking and a stronger US dollar. Gold futures for December on the Multi-Commodity Exchange (MCX) fell to Rs. 1,28,000 per 10 grams, a decrease of 0.21% from the previous close of Rs. 1,28,271. The fall came during Diwali week, where volatility is typically high due to festive demand and adjustments in the global markets.
The decline in gold prices is mostly related to profit-taking after the recent rally that brought prices to record highs before Diwali 2025.
Investors sold to take profits, which has lowered gold prices in the near term. A stronger US dollar and easing US-China trade tensions, reducing gold's safe haven demand. As a result, traders are shifting towards equities. Investors are taking profits amid improving global stability and lower market volatility.
In Mumbai, gold prices edged slightly lower. The price of 24-carat gold fell to Rs. 12,720 per gram from Rs. 13,058 a day earlier, while 10 grams traded at Rs. 1,27,200 compared to Rs. 1,30,580yesterday.
Similarly, 22-carat gold slipped to Rs. 11,660 per gram from Rs. 11,970, with the 10-gram price easing to Rs. 1,16,600 from Rs. 1,19,700.
In Chennai, gold prices also decreased sharply. The price of 24-carat gold declined to Rs. 12,764 per gram from Rs. 13,091 the previous day, while 10 grams fell to Rs. 1,27,640 from Rs. 1,30,910.
22-carat gold also decreased to Rs. 11,700 per gram from Rs. 12,000, and for 10 grams the price declined to Rs. 1,17,000 to Rs. 1,20,000.
Delhi mirrored the price decline similar to Mumbai.
Globally, spot gold slumped 6.3% to $4,082.03 per ounce, while spot silver dropped 8.7% to $47.89 per ounce. Similarly, Comex gold futures plunged 5.66% to $4,112.70, marking one of the steepest selloffs in over a decade.
Ross Maxwell, Global Strategy Lead at VT Markets, noted that gold remains “a compelling hedge and portfolio diversifier,” but warned that sustaining a rally above the $4,000-$4,400 range could be challenging.
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Despite the correction, analysts remain optimistic about gold’s longer-term outlook. The prospect of a US Federal Reserve rate cut could reduce the opportunity cost of holding gold, support prices in the medium term.
Experts view the current dip near Rs. 1.27-Rs. 1.28 lakh per 10 grams as a buy-on-dips opportunity for long-term investors, though short-term traders are advised to stay cautious until clarity emerges from US inflation data and geopolitical developments later this week.