Gold and Silver Prices Plummet After Diwali, Gold Records Biggest Drop in Four Years
Mumbai, 22nd October 2025: The post-Diwali season has brought a sudden halt to the rally in gold and silver prices, with the gold market witnessing its largest decline in four years. On Monday, gold reached a new peak of $4,381 per ounce but has since fallen by around 3.8%, while silver dropped from $54 to $50 per ounce.
Market analysts attribute this sharp correction to a combination of factors, including a strengthening US dollar, easing US-China tensions, and the end of festive buying in India.
Profit-Booking Phase Underway
Experts say gold had entered the overbought zone, triggering a period of profit-booking. “The rise of the US dollar has put additional pressure on gold and silver, making them more expensive for investors abroad. Coupled with easing geopolitical tensions, investors are shifting away from safe-haven assets like gold,” explained commodity analyst Rajesh Mehta.
Further Fluctuations Expected
In India, the demand for gold during the festive season has now subsided, contributing to the drop in prices. Bloomberg charts show gold falling from $4,350 to $4,250 per ounce, and silver from $54 to $50 per ounce. Experts suggest that the market environment remains uncertain, and further price fluctuations are likely in the coming days.
MCX Rates Today
On the Multi Commodity Exchange (MCX), gold and silver prices also registered declines on Tuesday. 24-carat gold reached ₹1,28,000 per 10 grams, down ₹1,371 from the previous session, while silver traded at ₹1,48,508 per kilogram, a decrease of ₹1,819. Commodity analysts caution that prices may continue to trend downward in the near term.
With global factors and domestic demand influencing the market, investors are advised to exercise caution and closely monitor fluctuations in precious metal rates.
