Gold Prices Slip Again: Global Factors Trigger Fresh Decline in India’s Bullion Market

Gold prices in India witnessed another drop on Thursday, marking a reversal after a brief uptick earlier this week. The latest correction comes amid global economic signals, a stronger U.S. dollar, and easing trade tensions between the United States and China — factors that continue to shape international bullion trends.

📉 Gold Prices Drop Across Major Indian Cities

According to the latest market updates as of October 31, 2025, gold prices have declined across India’s leading markets.

• In Delhi, the price of 24-carat gold stands at ₹1,21,620 per 10 grams, while 22-carat gold is priced at ₹1,11,490 per 10 grams.

• In Mumbai, Chennai, and Kolkata, 22-carat gold is available at ₹1,11,340 per 10 grams, and 24-carat gold costs ₹1,21,470 per 10 grams.

• In Ahmedabad and Bhopal, 22-carat gold is slightly lower at ₹1,10,490 per 10 grams, while 24-carat gold is at ₹1,21,520 per 10 grams.

Here’s a snapshot of the latest gold prices across key cities:

🌍 Why Are Gold Prices Falling?

The drop in gold prices comes amid mixed global economic cues. The U.S. Federal Reserve recently announced a 0.25% rate cut, a move aimed at supporting economic stability. However, Fed Chair Jerome Powell indicated that further monetary easing is unlikely in the near term due to uncertainty surrounding the U.S. government’s ongoing budget issues and lack of fresh economic data.

As a result, the U.S. dollar gained strength, reducing global investors’ appetite for gold — traditionally considered a safe-haven asset when currencies weaken.

Adding to this, trade tensions between the U.S. and China have shown signs of easing. U.S. President Donald Trump announced a 10% reduction in tariffs on Chinese goods, bringing the rate down from 57% to 47%. This progress has restored some investor confidence in global trade, lowering the appeal of gold as a hedge against geopolitical risks.

🇮🇳 Domestic and Global Factors at Play

In India, gold prices are influenced not just by global trends but also by domestic factors such as currency movement, import duties, and demand during festive seasons. With the rupee gaining marginally against the U.S. dollar and festive buying slowing down after Dussehra, domestic prices have aligned with the global downtrend.

🪙 Silver Prices Also Decline

Following the same pattern, silver prices also dropped in India. On October 31, silver was trading at ₹1,50,900 per kilogram. However, in international markets, silver prices saw a slight rebound, rising 1.21% to $48.14 per ounce, indicating short-term volatility in the precious metals segment.

📊 What Lies Ahead for Investors

Market experts suggest that the recent correction could be temporary. With ongoing global uncertainties, central bank policies, and fluctuating currency trends, gold may continue to experience moderate volatility in the coming weeks.

Long-term investors, however, may view this dip as a buying opportunity, particularly ahead of the upcoming wedding and festive season when demand typically rises.

🧭 Final Takeaway

The decline in gold and silver prices reflects the impact of global economic shifts — from the U.S. interest rate outlook to easing trade tensions. While short-term volatility is expected, India’s demand for gold as a cultural and investment asset remains strong.

For now, buyers can take advantage of lower prices, but keeping an eye on upcoming central bank decisions and global inflation data will be crucial to predicting the next big move in bullion markets.