The glitter of gold doesn’t always mean easy riches. After a rise that had investors excited, gold prices have taken a bit of a U-turn.
The latest reports claim that in India, the price of 24 kt gold on MCX, which had recently touched Rs 1,32,294 per 10 grams, has now slipped to Rs 1,25,957.
That’s a 3% drop which raised eyebrows.
Silver, not to be left behind, dropped over 8%, from Rs 1,70,415 to Rs 1,53,929 per kg. Some observers pointed out that silver has doubled in a year, so a sudden drop isn’t shocking — just dramatic.
According to reports, this is not the end of the world. Just a “healthy correction”, as experts put it.
Economists have given their two-pence. They say the fall is due to the present geopolitical scenario. As one observer dryly noted, this was the biggest rally in nine weeks.
The market had become technically overbought, and some tactical profit-booking was expected. Reports suggest the shift in tone from global leaders — especially around US-China tariffs and peace talks involving major powers — helped ease tensions and triggered the retreat.
Internationally, gold was on a rally of its own. Prices jumped nearly 10% in just a week, closing around $4,379 per ounce.
This marked five straight sessions of gains, and some market watchers hinted that “something big” could be around the corner.
Trade tensions, weak banks, conversations about US interest rate cuts, and enough geopolitical spice contributed to the scenario.
Reports suggest that central banks have been busy buying gold like it’s going out of fashion. Add to that the trend of de-dollarisation, and the result is a strong tailwind for bullion. ETFs have also seen healthy inflows, as per analysts.
Experts observe that low real interest rates continue to favour gold and silver, which don’t pay interest but tend to shine when other returns are low.
Domestically, the timing was significant. Gold expectedly reached Rs 1,30,233 per 10 grams before Diwali. And then the market turned.
Still, analysts believe this is the first major dip in eight weeks, and the coming days will reveal whether the trend resumes.
Silver, in particular, continues to attract attention. According to analysts, it has a dual role, silver being both a precious metal and an industrial raw material. Naturally, it makes for a compelling long-term story.
The mood is optimistic, reports suggest. Experts believe the glitter may well return.
As one market report hinted, gold holds steady when the financial seas get rough.
Also Read: Gold Prices Soar In 2025 https://www.vibesofindia.com/gold-prices-soar-in-2025/
