Gold prices in India fell sharply on Wednesday, October 22, marking the fourth straight day of decline and offering relief to retail shoppers after the festive surge. With Diwali and Dhanteras now over, traders say focus has shifted to the wedding season, where demand for gold and silver jewellery is expected to stay strong.
According to market analysts cited by Goodreturns, the latest correction follows a global sell-off in bullion, as investors booked profits after gold touched record highs earlier this month.
Gold prices today: Rs 3,380 fall in 24-carat gold
The 24-carat gold rate dropped by Rs 3,380 per 10 grams to Rs 1,27,200, while the 22-carat gold price fell Rs 3,100 to Rs 1,16,600 per 10 grams.
18-carat gold now trades at Rs 95,400 per 10 grams, down by Rs 2,540.
For bulk buyers, 100 grams of 22-carat gold costs Rs 11,66,000, while 100 grams of 24-carat gold is now Rs 12,72,000.
The drop follows one of the strongest rallies in months, driven by heavy festival-season buying and safe-haven demand in global markets.
Silver prices slip for fifth straight session
Silver continued its losing streak, slipping Rs 100 to Rs 1,63,900 per kg, extending its fall to a fifth consecutive day. Prices of 100 grams of silver were quoted at Rs 16,390.
Bloomberg reported that India’s record silver buying during the festive season has led to shortages in London’s bullion market, with global supply already strained by the solar industry’s rising consumption.
MCX futures remain closed for Diwali
Trading on the Multi Commodity Exchange (MCX) remained shut for Diwali. At the previous close on October 21:
Gold December futures settled at Rs 1,28,000 per 10 grams, down 0.21 percent.
Silver December futures dropped 0.22 percent to Rs 1,50,000 per kg.
Global market trend: Spot gold under pressure
According to Reuters, spot gold fell 0.4 percent to $4,109.19 per ounce as of 02:36 GMT, marking its steepest fall since August 2020 after tumbling more than 5 percent on Tuesday.
Meanwhile, U.S. gold futures edged 0.4 percent higher to $4,124.10, while spot silver rose marginally to $48.82 per ounce.
The global sell-off is largely attributed to profit-booking and shifting investor focus toward risk assets after a prolonged rally in gold prices.
Wedding season to drive next leg of demand
With the festival buying spree cooling off, jewellers now expect a rebound from the wedding season, typically one of India’s strongest gold-buying periods.
Despite the near-term dip, traders believe sentiment remains fundamentally bullish, supported by high liquidity, geopolitical uncertainty, and wedding-led demand.
Gold prices in India are influenced by a mix of international spot rates, import duties, GST, and currency fluctuations. As the rupee weakens or global prices rise, domestic gold becomes more expensive.
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