Gold and Silver Prices Crash After Nine-Week Rally as Dollar Strengthens, Festive Demand Fades

Mumbai, October 25, 2025: Gold and silver prices plunged this week, ending a nine-week winning streak as investors booked profits amid a stronger U.S. dollar, easing geopolitical tensions, and weak global trends. The correction followed record highs earlier this month that had drawn heavy speculative buying during the festive season.

On the Multi Commodity Exchange (MCX), gold futures for December delivery fell by ₹3,557, or 2.80%, closing at ₹1,23,451 per 10 grams on Friday. Silver futures also dropped sharply, with the December contract crashing by ₹9,134, or 5.83%, to ₹1,47,470 per kg.

After touching lifetime highs of ₹1,32,294 per 10 grams for gold and ₹1,70,415 per kg for silver on October 17, both metals have seen steep declines—gold by ₹8,843 (6.68%) and silver by ₹22,945 (13.46%).

Globally, Comex gold surged to an all-time high of $4,398 per ounce on Monday before plunging $266.4, or 6.11%, the next day—its sharpest one-day drop in over a decade. The correction marked the steepest fall since 2013, said Mahendra Patil, founder of MP Financial Advisory Services LLP.

“In India, physical gold demand weakened post-Diwali as buyers waited for further corrections. Global ETFs also recorded redemptions in mid-October after heavy inflows in September, signaling institutional profit-taking,” Patil said.

NS Ramaswamy, Head of Commodities & CRM at Ventura, noted that while jewellery demand slowed after Diwali, digital gold buying stayed firm. “We expect renewed buying during the upcoming wedding season,” he added.

Silver, which had outperformed gold during the rally, saw a sharper correction as speculative positions were unwound worldwide. Comex silver fell from its record $53.76 per ounce to $47.12 per ounce, down 11–14% overall.

“The correction was triggered by profit-taking, easing geopolitical risks, and U.S.-China trade progress,” Ramaswamy explained.

Pankaj Singh, founder of SmartWealth.ai, called the pullback “a consolidation, not capitulation,” noting that the long-term outlook for precious metals remains strong due to central bank buying and inflation hedging.

Experts say the decline reflects a healthy market adjustment after an overheated festive rally, with prices likely to stabilize before the next demand phase driven by the wedding season.