Strikingly deviating from the year’s profits, both gold and silver prices in India have fallen sharply by more than Rs 35,000 over 13 days in October 2025. The drop was unexpected for some investors and retail buyers, occurring amid various factors related to global economics and market trends.
Gold Price Decline Details
After Gold’s price rallied by 60+% earlier in 2025, it fell sharply in the latter part of October. Twenty-four carats of Gold plummeted from around Rs 13,084 a gram on October 18 to Rs 12,082 a gram on October 28, indicating a crash of Rs 1,0004 per gram or Rs 1,00,400 per 100 gms in just 10 days. The decrease in both 22 and 18 carats of Gold was identical, at Rs 225 and Rs 184 per gram, respectively.
When adding the typical purchase quantities, this large swing in gold prices led prices to drop by Rs 35,000 or more. Even a similar battle had been witnessed during the festive season right around Chhath Puja and before Diwali, when gold rates dropped steadily despite seasonal demand. The US dollar index strengthened, US-China exchange tensions eased, and the US federal Government became more cautious about its monetary policy decisions, all of which contributed. Amid its rate expectations, gold prices had temporarily soared. Finally, higher real interest rates have driven market sell-offs amid less accommodative policies.
Silver Price Trend and Crash
Meanwhile, silver prices have been as volatile. Silver peaked at an all-time high of Rs 1,90,000 per kilogram in the middle half of October, but thereafter, fell like a house of cards to Rs 156,000 per kilogram on October 24—a fall of Rs 34000 in just nine days. Throughout this time, daily retracements were consistent, and there were declines as the globe faced reduced demand and a stronger, firmer dollar; one day fell by as much as Rs 3000. Post that, silver prices have seen a mixed trend of short covering and corrective buying, but have been under pressure due to global economic factors, including lower industrial demand forecasts and changing trading patterns.
Market and Investor Impact
Such a drastic fall is a massive hurdle for investors and traders who expected the prices to keep rising during the upcoming festival season. Simultaneously, it could also work to the advantage of market newcomers considering entering now to secure lower price points. Market insiders predict that the see-saw trend will persist due to the impact of global economic factors, Federal Reserve policies, and global uncertainty on the precious metals market. The dollar-rupee equation, on the other hand, will be the deciding factor for domestic prices, as the weaker the rupee, the more expensive Gold and silver will be in the country.
Conclusion
To conclude, in October 2025, the gold and silver markets saw significant corrections totaling more than Rs 35,000 over about two weeks. They demonstrate the extent to which precious metals are susceptible to global financial market policies and dynamics, including currency exchange rates and geopolitical stability. In times of extreme fluctuations, investors must be aware of the recent macroeconomic trends to act prudently.