Will gold, silver prices fall in India tomorrow as global rates crash?

After a strong rally that pushed gold and silver to record highs this month, prices have started to cool off. Globally, gold fell as much as 2.9% Wednesday to $4,004 an ounce, following a staggering 6.3% intraday drop on Tuesday, the steepest in more than a dozen years.

Silver tumbled over 2% to around $47.6 after a 7.1% plunge the day before. The sudden decline reflects a wave of profit-taking, with investors booking gains after months of record-breaking increases.

Tim Waterer, chief market analyst at KCM Trade told Bloomberg News that profit-taking moves have started to snowball. “High temptation for traders to take profit at price levels which have never been seen before in the gold market,” Waterer added.

The timing for Indian investors is awkward. The Multi Commodity Exchange, or MCX, is closed today for Diwali-Balipratipada, meaning the domestic market has not yet reacted to the global sell-off.

When trading resumes tomorrow, October 23, gold and silver futures are expected to open lower.

As of now, December gold futures on MCX stood at Rs 1,28,000 per 10 grams, down Rs 271 or 0.21 percent from the previous close. Silver futures were at Rs 1,50,000 per kilogram, down Rs 327 or 0.22 percent.

This comes after a historic rally that saw gold reach $4,381.21 per ounce on Monday, and gain nearly 56% for the year, driven by strong central bank demand, geopolitical tensions, and expectations of rate cuts by major central banks.

Analysts say the pullback is partly a result of traders shifting focus to macroeconomic cues, particularly US inflation and monetary policy updates.

Comments from US President Donald Trump, who expressed optimism about reaching a fair trade deal with Chinese President Xi Jinping, also eased some global trade concerns, slightly reducing gold’s safe-haven appeal.

Investors are now awaiting the US Consumer Price Index for September, which was delayed due to the ongoing US government shutdown. The data will provide clues on inflation trends and the Federal Reserve’s next interest rate decision, with some expecting a 25 basis point cut next week and again in December.

Despite the short-term dip, experts believe gold and silver could remain firm in the medium term, supported by ongoing global uncertainties, central bank purchases, and a weaker dollar outlook.

Corrections like the one seen this week are expected after months of rapid gains, and the festival season, including Dhanteras and Diwali, continues to support physical demand, cushioning the market. Traders note that once the festive buying ends, prices may moderate if global risk appetite improves or if inflation data signals slower rate cuts.

For Indian investors, tomorrow’s session will be telling. Gold and silver are unlikely to continue the year’s meteoric rise uninterrupted, but long-term drivers, including geopolitical and economic uncertainty, central bank demand, and expectations of lower interest rates, remain intact.

Those holding positions in metals should brace for potential losses when MCX reopens, but short-term dips could present an opportunity for investors with a clear strategy.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

After a strong rally that pushed gold and silver to record highs this month, prices have started to cool off. Globally, gold fell as much as 2.9% Wednesday to $4,004 an ounce, following a staggering 6.3% intraday drop on Tuesday, the steepest in more than a dozen years.

Silver tumbled over 2% to around $47.6 after a 7.1% plunge the day before. The sudden decline reflects a wave of profit-taking, with investors booking gains after months of record-breaking increases.

Tim Waterer, chief market analyst at KCM Trade told Bloomberg News that profit-taking moves have started to snowball. “High temptation for traders to take profit at price levels which have never been seen before in the gold market,” Waterer added.

The timing for Indian investors is awkward. The Multi Commodity Exchange, or MCX, is closed today for Diwali-Balipratipada, meaning the domestic market has not yet reacted to the global sell-off.

When trading resumes tomorrow, October 23, gold and silver futures are expected to open lower.

As of now, December gold futures on MCX stood at Rs 1,28,000 per 10 grams, down Rs 271 or 0.21 percent from the previous close. Silver futures were at Rs 1,50,000 per kilogram, down Rs 327 or 0.22 percent.

This comes after a historic rally that saw gold reach $4,381.21 per ounce on Monday, and gain nearly 56% for the year, driven by strong central bank demand, geopolitical tensions, and expectations of rate cuts by major central banks.

Analysts say the pullback is partly a result of traders shifting focus to macroeconomic cues, particularly US inflation and monetary policy updates.

Comments from US President Donald Trump, who expressed optimism about reaching a fair trade deal with Chinese President Xi Jinping, also eased some global trade concerns, slightly reducing gold’s safe-haven appeal.

Investors are now awaiting the US Consumer Price Index for September, which was delayed due to the ongoing US government shutdown. The data will provide clues on inflation trends and the Federal Reserve’s next interest rate decision, with some expecting a 25 basis point cut next week and again in December.

Despite the short-term dip, experts believe gold and silver could remain firm in the medium term, supported by ongoing global uncertainties, central bank purchases, and a weaker dollar outlook.

Corrections like the one seen this week are expected after months of rapid gains, and the festival season, including Dhanteras and Diwali, continues to support physical demand, cushioning the market. Traders note that once the festive buying ends, prices may moderate if global risk appetite improves or if inflation data signals slower rate cuts.

For Indian investors, tomorrow’s session will be telling. Gold and silver are unlikely to continue the year’s meteoric rise uninterrupted, but long-term drivers, including geopolitical and economic uncertainty, central bank demand, and expectations of lower interest rates, remain intact.

Those holding positions in metals should brace for potential losses when MCX reopens, but short-term dips could present an opportunity for investors with a clear strategy.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of The Veracity News group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)