Gold Prices Fall Sharply by Rs 9,356 in a Week; Silver Drops Over Rs 4,000 per Kg

New Delhi, 24th October 2025: The domestic bullion market witnessed a significant correction this week as the price of gold fell by ₹9,356 per 10 grams within seven days, dropping to ₹1,21,518 from its all-time high of ₹1,30,874 recorded on October 17.

According to the India Bullion and Jewellers Association (IBJA), gold prices declined by ₹1,836 on October 24, compared to ₹1,23,354 per 10 grams on the previous day. Silver also saw a major dip of ₹4,417, settling at ₹1,47,033 per kilogram, down from ₹1,51,450 a day earlier. Overall, silver has fallen by ₹31,067 from its recent peak.

IBJA’s rates exclude 3% GST, making charges, and jeweler’s margins, which cause price variations across cities. These benchmark rates are also used by the Reserve Bank of India (RBI) to determine Sovereign Gold Bond values, and by several banks for gold loan pricing.

Current Gold Prices at Major Jewelers (22K)

• Tanishq: ₹1,15,400 / 10g
• Kalyan Jewellers: ₹1,14,000 / 10g
• Malabar Gold & Diamonds: ₹1,14,000 / 10g
• Caratlane: ₹1,16,590 / 10g
• Bhima Jewellers: ₹1,13,180 / 10g

Why Gold and Silver Prices Are Falling

1. End of Seasonal Demand: With the festive season, including Diwali, now over, demand for gold and silver in India has slowed, leading to price corrections.
2. Reduced Global Uncertainty: Gold and silver are traditionally considered safe-haven assets. As geopolitical tensions have eased, investors are shifting towards riskier assets.
3. Profit Booking: Following the recent rally, traders are booking profits. Technical indicators such as the Relative Strength Index (RSI) showed that gold was in an overbought zone.
4. Market Adjustment: Trend-following investors and dealers have started offloading their holdings, adding to the downward pressure.

Year-to-Date Gains

Despite the recent correction, both gold and silver have delivered strong returns this year.

• Gold has gained ₹45,356 so far in 2025, rising from ₹76,162 per 10g on December 31, 2024, to the current ₹1,21,518.
• Silver has climbed ₹61,016 during the same period, from ₹86,017/kg to ₹1,47,033/kg.

Tips for Buyers

1. Buy Certified Gold: Always purchase BIS-hallmarked gold, which indicates purity. The hallmark number (e.g., AZ4524) confirms authenticity.
2. Verify Price and Weight: Check the daily rate on the IBJA website and cross-verify with multiple sources. Gold prices vary based on purity — 24K, 22K, or 18K.

Why Gold Prices Differ Across Cities

1. Transportation Costs: Shipping gold involves logistics, security, and fuel costs, which vary by region.
2. Local Demand: Southern states account for nearly 40% of India’s gold consumption. Bulk buying there often results in lower prices.
3. Local Associations: Regional jewelry associations, such as the Tamil Nadu Jewellers and Diamond Traders Association, set city-level rates.
4. Purchase Price: Jewelers who bought gold earlier at lower prices can afford to sell at slightly reduced rates.

Related Insight: Lessons from Silver’s 1980 Crash

The current fall in silver prices — nearly ₹25,000 per kg in a week — has drawn comparisons to the historic “Silver Thursday” crash of 1980, triggered by the Hunt Brothers of the U.S.

At that time, Nelson Bunker Hunt and William Herbert Hunt cornered nearly one-third of the global silver supply, driving prices up from $2 to $48 per ounce before the market collapsed. The episode remains one of the most dramatic examples of speculation and market manipulation in history — and serves as a warning for today’s investors.