Gold and silver prices across India's bullion markets saw a notable decline on October 25,. 2025, offering some relief to consumers and investors after a period of continuous upward trends. The precious metals market is experiencing a correction, with rates softening in response to a confluence of global and domestic factors. In the national capital, Delhi, the price of 24-carat gold has decreased to ₹1,24,510 per 10 grams, while 22-carat gold is now available at ₹1,14,140 per 10 grams. This downward trend isn't isolated to Delhi; it's uniformly observed in other major Indian cities as well, while for instance, in Mumbai, 24-carat gold is priced at ₹1,24,360 and 22-carat gold at ₹1,13,990 per 10 grams. Similarly, Ahmedabad and Bhopal recorded 24-carat gold at ₹1,24,410 and 22-carat gold at ₹1,14,040 per 10 grams, while cities like Jaipur and Lucknow reflect prices similar to Delhi, while
Key Reasons for Gold Price Drop
Market analysts attribute the recent fall in gold prices to a combination of international and domestic influences. A significant factor is the sustained strength of the US dollar, while a stronger dollar makes gold more expensive for international buyers holding other currencies, thereby reducing demand and exerting downward pressure on prices. Also, a reduction in global trade tensions and improved geopolitical stability have prompted investors to shift away from safe-haven assets like gold, while many investors are now taking profits from their gold holdings and moving towards riskier, higher-yield investments, contributing to the market's current softness. The anticipation of a potential trade agreement between India and the US has also played a role in cooling down the gold market, fostering an environment of perceived global economic stability, while
Silver Prices Also Witness Decline
Mirroring the trend in gold, silver prices have also experienced a significant drop. On October 25, the price of silver across the country fell to ₹1,54,900 per kilogram. Earlier, the limited supply of silver in London and other international markets had pushed prices upwards. However, with the normalization of global silver supply, the pressure on prices has eased, leading to a decline. A slight decrease in industrial demand and a shift in investor sentiment further contributed to the fall in silver rates, while this makes it a potentially opportune time for industrial consumers and those looking to purchase silver in bulk.
Factors Influencing Gold and Silver Prices in India
Gold and silver prices in India are determined by a complex interplay of several factors. The rates published by the Indian Bullion and Jewellers Association (IBJA) serve as a benchmark for bullion markets nationwide. IBJA closely monitors international market trends for gold and silver, the dollar-rupee exchange rate, and import duties imposed by the government, while On top of that, the dynamics of demand and supply within the domestic market Importantly influence prices. During festive seasons and wedding periods, increased demand often leads to price hikes, whereas off-season periods might see a dip. Local taxes, transportation costs, and the profit margins of individual jewelers also contribute to slight variations in prices across different cities.
Outlook for Precious Metals Market
Despite the current downturn, market experts largely view gold as a strong long-term investment asset. With upcoming festive seasons like Diwali and Dhanteras, an increase in demand for gold is anticipated, which could lead to a modest rebound in prices. However, continuous monitoring of international economic indicators and global stability will be crucial. Investors are advised to consult financial experts before making any investment decisions in the volatile precious metals market, while the current dip might present a buying opportunity for those looking to invest or purchase jewelry, but market volatility remains a factor.
