New Delhi ( Economy India): In a significant correction, gold prices have dropped sharply by ₹9,356 per 10 grams in just a week, settling at ₹1,21,518 per 10 grams. According to the India Bullion and Jewellers Association (IBJA), the yellow metal had touched its all-time high of ₹1,30,874 per 10 grams on October 17.
Silver too witnessed a steep fall of ₹4,417 per kilogram, bringing its price down to ₹1,47,033 from ₹1,51,450 per kg a day earlier. The precious metal has now lost over ₹31,000 from its recent peak, marking one of the sharpest weekly declines this year.
Daily Price Movement
On October 24, gold prices tumbled ₹1,836 in a single day. IBJA data revealed that gold was trading at ₹1,23,354 per 10 grams on Thursday, but the next morning, it slipped further to ₹1,21,518.
Silver’s decline was even steeper — losing ₹4,417 per kg in a single session. However, IBJA prices do not include 3% GST, making charges, or jeweller margins. These benchmark rates are primarily used by the Reserve Bank of India (RBI) to determine the Sovereign Gold Bond issue prices and for several banks to fix gold loan valuations.
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Gold Prices Plunge ₹1,836 in a Day, Silver Falls ₹4,417: 7-Day Decline Wipes Out ₹9,356 from Gold’s Value
📊 Economy India – Financial Analysis Box
Commodity Focus: Gold & Silver Date of Report: October 25, 2025 Source: IBJA (India Bullion & Jewellers Association)
🔻 Market Summary
Metal
Price (₹)
Change (₹)
% Change (1 Day)
Weekly Movement
Gold (24K / 10g)
₹1,21,518
↓ ₹1,836
-1.5%
↓ ₹9,356
Silver (1kg)
₹1,47,033
↓ ₹4,417
-2.9%
↓ ₹31,067
🪙 Year-to-Date (YTD) Movement
Gold: ↑ ₹45,356 (+59.5%) since Dec 2024
Silver: ↑ ₹61,016 (+70.9%) since Dec 2024
⚙️ Key Drivers Behind Price Correction
Reduced Seasonal Demand: Post-Diwali lull in jewelry and bullion buying.
Global Calm: Decline in geopolitical tensions reducing safe-haven demand.
Short Term: Possible volatility due to technical correction.
Medium Term: Prices may stabilize if global central banks slow rate hikes.
Long Term: India’s festive and wedding demand remains a strong support base.
🧾 Expert Tip
“Gold remains a hedge against inflation and currency risk. Investors can use corrections to accumulate gradually through SIP in Sovereign Gold Bonds or ETFs.” — Economy India Research Desk
Gold Prices Plunge ₹1,836 in a Day, Silver Falls ₹4,417: 7-Day Decline Wipes Out ₹9,356 from Gold’s Value
Current Gold Prices at Major Jewellers
Jeweller
22K Gold Price (per 10 gm)
Tanishq
₹1,15,400
Kalyan Jewellers
₹1,14,000
Malabar Gold & Diamonds
₹1,14,000
CaratLane
₹1,16,590
Bhima Jewellers
₹1,13,180
Why Are Gold and Silver Prices Falling?
Experts attribute the correction to a combination of domestic and global factors:
End of Seasonal Buying: Post-Diwali, gold and silver demand typically drops as the wedding and festive season ends in India.
Easing Global Tensions: Precious metals act as “safe-haven assets.” With easing geopolitical tensions, investors have shifted away from gold and silver.
Profit-Booking and Overbought Indicators: After a sustained rally, traders have begun profit-booking. Technical indicators such as the Relative Strength Index (RSI) suggested gold had entered the overbought zone, triggering a sell-off.
Year-to-Date Performance
Despite the recent drop, both metals remain significantly higher on a year-to-date basis.
Gold: Up ₹45,356 since December 31, 2024 (from ₹76,162 to ₹1,21,518 per 10 gm).
Silver: Up ₹61,016 during the same period (from ₹86,017 to ₹1,47,033 per kg).
This long-term upward trend highlights gold’s resilience amid global uncertainty, despite short-term volatility.
Tips for Buyers: Ensuring Safe Gold Purchases
Always Buy BIS Hallmarked Gold: Look for the Bureau of Indian Standards (BIS) hallmark. A certified hallmark, such as “AZ4524,” ensures purity and authenticity.
Cross-Check the Rate: Verify daily rates from reliable sources such as IBJA’s official website. Prices vary for 24K, 22K, and 18K gold, so confirm before buying.
Why Gold Prices Differ Across Cities
Transportation Costs: Gold imports, largely transported by air, incur logistics, fuel, and security costs that vary regionally.
Regional Demand: Southern India accounts for nearly 40% of the country’s gold consumption. Bulk purchases here often mean lower retail prices compared to smaller cities.
Local Jewellery Associations: Rates are often set by regional trade associations like the Tamil Nadu Jewellers and Diamond Traders Association, leading to variation.
Stock Purchase Timing: Jewellers who bought gold when prices were lower can afford to sell at more competitive rates.
Market Outlook
Analysts suggest the correction could continue in the short term if global economic sentiment improves and investors shift to riskier assets. However, long-term fundamentals for gold remain strong given persistent inflationary pressures, central bank purchases, and geopolitical uncertainty.
For Indian investors, experts advise accumulating gold gradually through Sovereign Gold Bonds or SIPs in digital gold rather than attempting to time market highs and lows.
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