Prospective jewelry shoppers heading into the festive period received an unexpected financial breather as spot bullion prices tumbled sharply on Saturday. Trading activity across physical counters in the national capital saw gold drop by Rs 3,200 on October 31, pulling the retail benchmark down to Rs 1.42 lakh per 10 grams. The sudden downward adjustment places the yellow metal at its lowest trading point recorded over the last 10 months.
Silver Follows Suit With Deep Losses
Data provided by the All India Sarafa Association confirmed that gold had concluded the prior Friday session at Rs 1,45,200 per 10 grams. The current decline breaks past recent levels to touch territory unseen since December 26, 2025, when 10 grams closed at Rs 1,42,300.
Industrial and decorative white metal witnessed an even sharper correction in tandem with gold. The spot price for silver plummeted by Rs 4,200 to settle at Rs 1,86,000 per kilogram, retreating from Friday's mark of Rs 1,90,200. The last time the metal lingered near this valuation was on December 8, 2025, when local trades recorded an identical benchmark of Rs 1,85,000 per kilogram.
Global Headwinds and Monetary Policy Pressure
The swift unwinding of prices in domestic showrooms mirrored heavy selling across international commodity exchanges. Explaining the fundamental drivers, Rahul Khetawat, Senior Vice President and Fund Manager at investment firm 360 ONE Asset, pointed to rising energy costs re-igniting inflation worries and extinguishing hopes of near-term rate relief. Khetawat observed that hawkish rhetoric from the US Federal Reserve placed intense downward pressure across precious metal counters.
Overseas spot gold dropped 145.84 dollars, or roughly 4 percent, on Friday to close at 3,875.55 dollars per ounce, hitting a nadir not observed in over twelve months. The previous comparable dip happened on October 3, 2025, at 3,887.09 dollars per ounce. Spot silver endured an identical beating, retreating 3.04 dollars, or 6 percent, down to 49.12 dollars per ounce, nearing its November 6, 2025 mark of 48.02 dollars.
Tech Stocks Slump and Chinese Cash Demands
Motilal Oswal Financial Services Limited commodity analyst Manav Modi highlighted that selling momentum also spilled across Asian trading hubs, including steep drops in Shanghai futures contracts. Modi noted that elevated crude oil quotations are renewing expectations that the US Federal Reserve could hike policy rates in December, solidifying a prolonged higher-for-longer regime.
Compounding the sell-off, severe declines in AI-related equity counters forced market participants to liquidate liquid bullion holdings to satisfy margin requirements. Silver took an additional hit due to its sensitivity to industrial manufacturing conditions. Concurrently, reports indicated that market players in China offloaded gold assets to generate quick cash liquidity. Speculative positioning ahead of the US midterm elections also accelerated sales, with the legislative majority obtained by President Donald Trump's party poised to govern subsequent price directions.
