In October 2025, there was a significant drop in the prices of gold and silver in India, raising a new question: Is this the moment when gold and silver should be bought, or are the prices going to go down even more? The festive season is already over, and the markets are adjusting to the global events, so let’s analyse the causes of this correction and tell the investors the right moves to make.
What’s Happening in the Market?
After touching all-time highs earlier this month, gold and silver prices have corrected significantly. For example, 24-carat gold saw a drop from nearly ₹1,30,620 per 10 grams to about ₹1,18,210—a fall of roughly ₹12,000 in just a week. Silver also went down, hitting around ₹1,43,000 per kilogram and then bouncing back a little.
Silver has become much cheaper just in time for the Chhath Puja season, which attracts many buyers looking forward to getting the items at bargain prices.
What Causes Price Drops?
The main factors accounting for the declining prices are the following:
- Global Sentiment Shift: The global trade and a possible US Federal Reserve rate cut are making the market hopeful, which is consequently reducing the gold demand for investment as a safe haven.
- Stronger US Dollar: The dollar is gaining strength, which is usually the case when the gold price in India is coming down; this is because of the opposite nature of currency and commodity price movements.
- Profit Booking: A strong run in gold and other metals has led to many investors booking their profits, which is one of the reasons behind the price correction.
Expert Suggestions: Is it the Right Time to Buy?
Market analysts opine that gold has most likely located its near-term support at ₹1,17,000 per 10 grams, but the revival would not be possible unless there are new financial crises. Silver, being more volatile and closely linked to industrial trends, may see sharper swings in the weeks ahead.
- Long-term Investors: Corrections like this can be a good opportunity to accumulate gradually if gold or silver aligns with your long-term financial goals, particularly if you allocate precious metals to 5-15% of your total investment portfolio as a diversification hedge.
- Short-term Buyers: If you’re hoping for a quick profit, caution is advised. The sharpest declines may be behind us, but sideways movement or small dips could persist for some time.
- Silver vs Gold: Silver may rebound more quickly, but it is riskier. Only invest an amount you’re comfortable riding through high volatility.
Smarter Buying Strategies
- Consider staggered buying (SIP or small lots) during corrections instead of attempting to pick the absolute bottom.
- Track both global policy news and the rupee-dollar exchange rate, as both have immediate impacts on bullion prices in India.
- Prioritise allocated gold (jewellery, coins, bonds, or digital gold) with reliable certification or regulatory backing.
Conclusion
If gold and silver are part of your financial plan, the recent correction offers a practical window to add some bullion—but don’t rush to invest your entire budget all at once. For most people, precious metals should play a balancing, not dominant, role in a diversified investment portfolio. Let discipline and moderation guide your decisions as you ride out these volatile times.
Also Read: Gold & Silver Prices Are Falling: Should You Buy Now or Wait?
Gold & Silver Price Updates in India – Live Rates & Market Trends.
