Gold prices in India continued to slide, extending their weekly decline as investors booked profits following the recent record highs. The yellow metal dropped to as low as ₹1,20,515 per 10 grams this week, signaling a temporary pause in the bullish momentum that pushed gold to an all-time high earlier this month.
On Friday, gold futures on the Multi Commodity Exchange (MCX) settled 0.2% (₹196) lower at ₹1,23,255 per 10 grams, compared to last week’s historic peak of ₹1,32,275 per 10 grams.
Silver prices also mirrored gold’s weakness, declining 0.2% (₹320) to close at ₹1,47,150 per kilogram, down from last week’s record high of ₹1,70,415 per kilogram. The simultaneous drop in both metals reflects profit-taking activity and global market cues, as investors reassessed positions amid a stronger U.S. dollar and improved liquidity conditions.
Why Are Gold Prices Falling in India?
Analysts attribute the current decline primarily to profit-booking, margin adjustments on MCX, and a firmer U.S. dollar, which tends to make gold less attractive for holders of other currencies.
“The last couple of days have shown stability in gold. Margin reductions on MCX also led to profit-booking,” said Tarun Satsangi, Associate Director at R Money, in an interview with ET NOW Swadesh.
Echoing similar sentiments, Manav Modi, Analyst at Motilal Oswal, noted that post-festive season liquidity shifts have also contributed to the price correction.
“Post-Diwali, liquidity often shifts, and November tends to be a dull month. After a 60–70% rally, a 10–15% correction is healthy,” he said.
The Indian rupee also strengthened against the U.S. dollar on Friday, supported by falling global crude oil prices and optimism surrounding a potential India–US trade deal. A stronger rupee generally exerts downward pressure on gold prices, making the metal cheaper for domestic investors.
Gold and Silver: Long-Term Outlook Remains Bullish
Despite the short-term correction, market experts believe the long-term trend for gold and silver remains positive. The current decline is seen as a buying opportunity rather than the beginning of a downtrend.
Factors such as safe-haven demand, central bank gold purchases, and expectations of global interest rate cuts are expected to keep precious metals resilient in the coming months.
“Fundamentally, nothing has changed. Ceasefire talks haven’t progressed, ETF inflows remain steady, central banks are still buying, and rate-cut hopes are alive,” said Manav Modi.
Tarun Satsangi added,
“Geopolitical tensions between the US and Russia, rate-cut expectations, and the ongoing US government shutdown still support gold.”
Historically, geopolitical uncertainty drives investors toward gold and silver as safe-haven assets, supporting their long-term value.
Investor Takeaway
While short-term corrections in gold and silver prices are expected to continue amid profit-taking and currency strength, analysts maintain that the bullish long-term outlook is intact. Investors are advised to use dips to accumulate positions in precious metals, especially with continued uncertainty in global markets and the potential for monetary easing in 2026.
As global economic and political factors evolve, gold prices in India are likely to remain volatile yet upward-biased, making the metal a key portfolio diversifier for the months ahead.
