Gold and silver prices witnessed a sharp decline in the domestic futures market last week, with silver falling below the crucial ₹2 lakh-per-kilogram mark. On Monday, October 26, both metals showed a slight recovery in early trading. Gold futures on the Multi Commodity Exchange (MCX) were trading at around ₹1,42,810 per 10 grams, while silver futures stood at approximately ₹1,97,303 per kilogram in the morning session. During the previous week, gold fell by nearly 4%, losing ₹5,768 per 10 grams, while silver dropped 7.14%, declining by ₹15,087 per kilogram. Despite the early recovery, market experts believe prices could face further pressure in the coming days.
The recent decline is linked to rising crude oil prices, inflation concerns, a stronger US dollar and higher bond yields. These factors could encourage investors to move towards dollar-based assets and bonds instead of precious metals. Market participants are now closely watching the US Federal Reserve’s policy meeting scheduled for October 27–28, which could influence the next direction of gold and silver prices. If the US central bank maintains a stricter stance on interest rates, prices may face additional pressure. However, a softer approach could support a recovery. Experts have advised investors to remain cautious amid market volatility, as the recent price correction may continue. Actual gold and silver rates vary by city, purity and applicable taxes.
