Gold and silver prices fell sharply in India on Thursday, October 22, with gold declining to around ₹1.48 lakh per 10 grams and silver dropping to a 10-month low of ₹2.07 lakh per kilogram.
The correction comes ahead of Dhanteras and Diwali, as rising crude oil prices, inflation concerns and expectations of tighter US monetary policy weigh on precious metals despite geopolitical tensions in West Asia.
According to the All India Sarafa Association, gold of 99.9% purity fell ₹1,000 from Wednesday’s (October 21’s) close of ₹1.49 lakh per 10 grams. Silver declined ₹5,900 from ₹2.13 lakh per kg. Silver last traded at a comparable level on December 18, 2025, when it was priced at ₹2.07 lakh per kg.
In international markets, spot gold fell nearly 1.7% to $4,072.30 per ounce, while silver dropped nearly 4% to $55.72 per ounce, according to PTI.
Why are gold and silver prices falling?
Gold is traditionally considered a safe-haven asset during periods of geopolitical uncertainty. However, rising crude oil prices can complicate the outlook by fuelling inflation concerns and increasing the likelihood that interest rates will remain elevated.
Ashish Rajodiya, Head of Commodities at PL Capital, said,“Gold is caught between geopolitical uncertainty and concerns over higher interest rates. Rising crude oil prices have revived inflation concerns, while expectations of a hawkish US Federal Reserve, higher bond yields and a steady dollar are reducing the appeal of non-yielding bullion. Silver is facing additional pressure as elevated borrowing costs weigh on industrial demand expectations.”
Gaurav Garg, Head of Research at Lemonn, also said gold and silver were under selling pressure as rising crude oil prices revived inflation concerns and strengthened expectations that US interest rates could remain elevated for longer.
He further pointed to the Federal Reserve’s October 27–28 meeting and upcoming US inflation data as factors markets are watching.
For Indian buyers, currency movements also matter. Changes in the rupee-dollar exchange rate can influence the domestic price of imported bullion, alongside international prices, import costs and taxes.
What does the price fall mean for festive gold buyers?
The decline may offer some relief to households planning jewellery or coin purchases for Dhanteras and Diwali. However, a fall in prices does not guarantee that gold has reached its bottom, and buyers should avoid basing spending decisions solely on expectations of a further correction.
Kaushlendra Sinha, CEO of IAGES, said demand for gold is expected to remain supported by its role as a store of value and its cultural significance during the festive season. He noted that consumers are considering purity, ethical sourcing and transparency, alongside design and price. Lightweight jewellery and old-gold exchange programmes are also gaining traction.
For buyers, the total cost matters as much as the quoted gold rate. Jewellery purchases can include making charges and applicable taxes, while purity and storage are additional considerations. Those exchanging old jewellery should compare the valuation offered with the terms of the new purchase.
Jewellery or gold ETFs: What should buyers consider?
Gold jewellery and financial gold products serve different purposes. Jewellery can meet cultural and personal needs, while gold ETFs offer market-linked exposure without requiring the investor to store physical metal.
Kumar Binit, CEO of airpay money, said households were weighing traditional gold purchases against regulated investment options such as gold ETFs. He highlighted the importance of understanding the product’s regulatory framework, liquidity and costs before investing.
Gold ETFs are market-linked products and can fluctuate in value. Buyers should also distinguish them from digital gold products sold through online platforms, as the regulatory framework and investor protections may differ. The choice should depend on whether the objective is to purchase jewellery, follow a festive tradition or gain investment exposure to gold.
Will gold and silver prices recover?
The near-term outlook will depend on movements in crude oil prices, geopolitical developments, the US inflation trajectory and signals from the Federal Reserve. Persistently high energy prices and interest-rate expectations could continue to weigh on precious metals, while a moderation in inflation concerns or a shift towards a less restrictive monetary policy could provide support.
For Indian buyers, domestic prices will also depend on currency movements and local market conditions. Those planning festive purchases should set a budget, compare the total cost across sellers and check purity rather than assuming that a one-day price decline guarantees a better long-term buying opportunity.