Gold, Silver prices slump globally, over ₹4,000 drop in gold rates in India

Gold and silver prices have witnessed a sharp correction after touching lifetime highs earlier this week. On Wednesday, gold continued its downward slide, extending Tuesday’s massive 5% fall — the steepest single-day drop since August 2020. Globally, spot gold was trading at USD 4,109.19 per ounce, down over 6% from its record high of USD 4,381.21 per ounce hit on Monday.

In India, gold prices dropped by around ₹4,294 or 3% from their peak. After touching ₹1,32,294 per 10 grams earlier this week, the yellow metal now trades near ₹1,28,000 per 10 grams in local markets. Analysts attribute this fall to profit booking following a record rally in 2025, which saw gold deliver nearly 60% returns. Improved trade relations between the US and China and optimism over India-US trade talks have also eased safe-haven demand, contributing to the decline.

Silver too saw a sharp dip, marking one of its steepest corrections in recent years. In the US market, silver slumped 8% on October 21, dropping to USD 48.11 per ounce — nearly 12% lower than its lifetime high of USD 54.47 per ounce recorded just days earlier. In India, silver fell by ₹8,100 within two days and is now trading around ₹1,63,900 per kg. The fall has been linked to a stronger US dollar, possible delays in US Federal Reserve rate cuts, and weaker industrial demand.

Despite the setback, experts say the long-term fundamentals for bullion remain strong. Inflation concerns, geopolitical risks, and sustained central bank buying are expected to support gold and silver demand in the months ahead, though investors have been advised to stay cautious amid ongoing global volatility.