Shoppers preparing for festive purchases and precious metal investors saw significant price relief across October, as both gold and silver witnessed steep downward corrections. Over the course of just one month, gold tumbled by approximately ₹12,300, while silver recorded a sharp drop of around ₹48,000 per kilogram. Heavy selling continued through the trading session on Friday, October 30, compounding the monthly decline.
Trading figures from the Multi Commodity Exchange (MCX) show that gold was valued at ₹1,50,700 per 10 grams on October 1. By October 30, continuous market pressure pushed it down to around ₹1,38,400 per 10 grams, translating into a net monthly fall of nearly ₹12,300. Silver witnessed an even steeper retreat. Beginning the month at ₹2,27,200 per kilogram on October 1, it fell sharply to ₹1,79,132 per kilogram by October 30, registering a monthly decline of roughly ₹48,000 per kilogram.
Sharp Selling Pressure Marks the Final Session
Domestic trading on Friday, October 30, reflected aggressive liquidation across precious metal contracts. On the MCX, December gold futures slumped by 2.88 percent, or ₹4,111, to close at ₹1,38,485 per 10 grams. Concurrently, silver contracts lost 5.45 percent, or ₹10,321, falling to ₹1,79,132 per kilogram.
International benchmarks suffered similar headwinds. Spot gold slipped 3.61 percent to around $3,875 per ounce, while spot silver dropped 5.82 percent to touch $49.10 per ounce. The broad-based liquidation in overseas centers weighed directly on domestic sentiment.
Hawkish Signals from US Federal Reserve Weaken Bullion
Market observers attribute the broad sell-off primarily to the firm stance maintained by the US Federal Reserve. While the central bank opted to hold its benchmark interest rates steady within the 3.75 percent to 4 percent band, its voiced concerns regarding persistent inflation sparked nervousness. Traders interpreted the comments as a signal that borrowing costs could rise further, diminishing the appeal of non-yielding bullion.
Key Drivers That Will Shape Future Trends
Analysts note that the near-term trajectory of gold and silver will be dictated by movement in the US dollar index, sovereign bond yields, upcoming Federal Reserve decisions, and international crude oil prices. While market volatility is likely to persist in the short term, experts suggest this price correction may offer a strategic entry window for long-term investors and consumers planning seasonal jewellery purchases.
