Gold prices witnessed a downward trend across major Indian cities on October 31, with both 22-carat and 24-carat rates slipping slightly amid global market uncertainty. The fall in bullion prices came as the US dollar strengthened following mixed signals from the US Federal Reserve regarding future rate cuts. Despite the slight decline, gold continues to maintain its appeal as a safe-haven asset, recording its third consecutive monthly gain.
The price of 24-carat gold in Mumbai stood at ₹1,22,410 per 10 grams, while 22-carat gold was priced at ₹1,12,210 per 10 grams. In Delhi, 24-carat gold was available at ₹1,22,830, and 22-carat at ₹1,12,600 per 10 grams. These rates exclude GST and making charges, which vary across jewellers. Silver also witnessed a decline, trading at ₹1,52,100 per kg in retail markets, as global investors shifted toward the US dollar for short-term gains.
Gold and Silver Slip as Dollar Gains Strength
On the Multi Commodity Exchange (MCX), gold futures for December 5, 2025, contracts dropped by 0.34%, trading at ₹1,21,093 per 10 grams during morning hours. Silver followed a similar trend, falling by 0.45% to ₹1,48,169 per kg. The decline in precious metals was attributed to the rising dollar index, which hovered near its three-month high, making gold more expensive for foreign investors holding other currencies.
In the international market, spot gold was down 0.5% at $4,004 per ounce as of 0240 GMT, while US gold futures for December delivery held steady at $4,016.70 per ounce. Despite the short-term correction, gold has gained nearly 3.9% this month, driven by persistent global inflation concerns and safe-haven demand amid geopolitical tensions.
The Federal Reserve’s latest move to cut interest rates by 25 basis points for the second time this year brought temporary relief to bullion markets. However, comments by Fed Chair Jerome Powell signaled caution, suggesting that the central bank may not proceed with another rate cut in December. This uncertainty has contributed to the recent firmness in the dollar and subsequent weakness in gold prices.
Market sentiment now reflects a 74.8% probability of another 25-basis-point rate cut in December, compared to a 91.1% expectation a week ago, according to the CME Group’s FedWatch tool. The reduced odds of an immediate rate reduction indicate that investors are preparing for a period of stability in interest rates, which could keep gold prices under short-term pressure.
City-Wise Gold Prices Show Marginal Decline Across India
Gold prices across major Indian cities remained broadly aligned with slight regional variations due to transportation costs, local demand, and import charges. In Delhi and Jaipur, 22-carat gold was priced at ₹1,12,600 per 10 grams, while 24-carat gold was sold at ₹1,22,830. Ahmedabad reported a marginally lower rate of ₹1,12,500 for 22-carat and ₹1,22,730 for 24-carat gold.
In key southern and western cities such as Mumbai, Pune, Hyderabad, Chennai, and Bengaluru, the price of 22-carat gold was ₹1,12,450 per 10 grams, while 24-carat gold stood at ₹1,22,680. Similarly, Kolkata reflected the same prices, keeping parity with the national average. These figures underscore a consistent price range across India’s gold markets despite regional fluctuations in demand.
Silver also followed the same trajectory, with retail prices dropping marginally across metro cities. In Mumbai, silver traded at ₹1,52,100 per kg, while MCX silver contracts hovered around ₹1,48,169 per kg, marking a minor decline compared to the previous trading session. Analysts noted that the drop in both gold and silver was temporary and primarily driven by short-term currency strength rather than a fundamental weakness in demand.
Gold remains a deeply cultural and financial commodity in India, often serving as a preferred investment during festive and wedding seasons. With Diwali and the ongoing wedding season approaching, traders expect renewed consumer demand to stabilize prices. Jewelers are optimistic that any further correction in gold rates will attract retail buyers looking to purchase ornaments and coins for long-term investment.
Internationally, analysts are keeping a close eye on the interplay between the US dollar and gold prices. The dollar index’s rise, fuelled by the Federal Reserve’s cautious monetary stance, has put short-term pressure on precious metals. However, experts maintain that if inflation persists and geopolitical risks escalate, gold could resume its upward trajectory in the coming weeks.
The global bullion market has also been influenced by other macroeconomic factors such as fluctuations in bond yields, crude oil prices, and ongoing geopolitical tensions in Europe and the Middle East. These developments have made investors more cautious, prompting them to rebalance portfolios between equities and safe-haven assets like gold.
Despite the recent dip, gold has outperformed most traditional assets over the past year, offering a hedge against inflation and currency depreciation. Analysts believe that long-term fundamentals for gold remain strong, especially in emerging markets like India, where demand continues to rise steadily due to cultural affinity and investment sentiment.
Meanwhile, the silver market is expected to remain volatile in the short term due to its dual role as both a precious and industrial metal. Demand for silver in the renewable energy and electronics sectors could provide price support in the coming months, offsetting short-term weakness caused by global monetary factors.
While gold prices have declined marginally due to a stronger dollar and reduced expectations of immediate Fed rate cuts, the broader market outlook remains resilient. The festive season, combined with India’s traditional gold-buying culture, is likely to keep domestic demand steady. Investors are advised to watch global cues closely, as any shift in monetary policy or geopolitical developments could trigger renewed movement in precious metal prices.
As of now, gold continues to hold its position as a reliable store of value amid global uncertainty, serving as both a financial safeguard and a cultural cornerstone for millions of Indians.
