Precious Metals Slide: Gold And Silver Prices Drop Amid Global Sell-Off

The precious metals rally has taken a negative turn post Diwali.. Both Gold and Silver are currently slipping after reaching record highs due to mounting profit-booking, a stronger dollar and a declining safe investment.

On 28 Oct, MCX gold price slipped ~2.31% to ₹1,18,167 per 10 g and silver fell ~2.14% to ₹1,40,302 per kg.

As of today, 29 October 2025, gold is trading around ₹1,21,580 per 10 g for 24-carat, and ₹1,11,450 per 10 g for 22-carat gold, while silver is trading at ₹1,50,900 per kg.

With the world risk appetite back and profit-booking in high gear, the question is: Is this only a healthy correction after an overheated rally, or the start of a more serious pullback in precious metals?

What’s Driving The Drop In Bullion?

Several interlinked factors have triggered the pull-back in gold and silver:

• Profit-booking after a sharp run-up: Gold’s earlier surge (over 50% so far in 2025) left many positions overextended. On 21 October, global gold suffered its biggest one-day percentage drop in over a decade, falling roughly 6% from near US$4,400 per troy ounce.

• Stronger US dollar & easing safe-haven demand: With optimism growing about a US-China trade deal and geopolitical tensions easing, safe-haven flows into bullion have waned. The dollar’s rebound also makes non‐dollar assets less attractive.

• Technical/seasonal correction: After weeks of relentless gains, markets are consolidating. In India, 24-carat gold dropped by around ₹3,380 per 10 g on 22 Oct, and silver slipped for a fifth straight session.

• Industrial dynamic hitting silver harder: Silver’s dual role as an investment metal and industrial commodity (solar, electronics) means weaker industrial cues or surplus supply put extra pressure on it. Over the past ten days, silver in India fell about 17% from its peak.

Thus, the correction is both a reaction to stretched prices and a shift in broader macro sentiment.

How Big Is The Correction?

Here are some of the recent moves to give context for investors:

• On 27 Oct, gold futures on the Multi Commodity Exchange of India (MCX) traded around ₹1,20,909 per 10 g, down from around ₹1,26,854 on 24 Oct, a drop of nearly 4.9% within days.
  
• On 28 Oct, MCX gold price slipped ~2.31% to ₹1,18,167 per 10 g and silver fell ~2.14% to ₹1,40,302 per kg.
  
• Today, 29 Oct, the price of 24 carat gold is approximately ₹1,21,580 per 10 grams, while 22 carat gold is available for ₹1,11,450 per 10 grams. Silver is about ₹1,50,900 per kg.
  
• Silver has dropped about 19% from its mid-October peak in ETF terms, emphasising the depth of the correction.
  

For investors, that means the market isn’t just pausing, it is reacting.

What Should Investors Consider Now?

If you hold or plan to buy bullion, keep the following pointers in mind:

• Entry timing matters: With the sell-off underway, the “dip” may extend further if macro cues worsen. Several analysts view current levels as a consolidation rather than a clear bottom.
  

• Balance between gold and silver: Silver’s sharper decline reflects both industrial exposure and investment demand. If you believe in a long-term industrial theme (solar, EVs), silver may offer extra upside, but also extra risk.
  

• Cost of carry & storage risk: For physical bullion investors, remember storage costs, premiums over spot, and import duties (in India) matter. Price declines cut into both perceived value and holding cost.
  

• Monitor key macro triggers: Upcoming events (Federal Reserve policy decision, US inflation release, US-China trade developments) could swing metal prices sharply either way.
  

• Diversify, don’t bet everything: Precious metals still serve as hedge instruments, but after prolonged rallies they may underperform other assets for stretches. Use them as part of a broader portfolio, not the whole show.
  

Conclusion

Therefore, while the precious metals have dimmed for now, the fundamentals remain intact, although with a pause for breath. Will the correction strengthen the opportunity for long-term investors, or is a deeper structural shift underway that requires reevaluation of precious-metals exposure?

To long-term purchasers, this can be an opportunity to review and wait. To traders, the new regime would be better served by more caution before important signals are recalibrated.

References

Hindustan Times
Investopedia
India Today
Moneycontrol
The Times of India
The Economic Times
The Economic Times
The Times of India
The Financial Express