In India, gold prices recently climbed to unprecedented levels, only to begin a sharp correction. For example: on 21 October 2025, 24-carat gold was trading around ₹1,30,860 per 10 grams in major cities. Earlier in the month, per-gram rates for 24-carat gold had touched approx ₹13,278 per gram on 18 October. Then by 23 October, one gram of 24-carat was quoted at about ₹12,508. This slide from around ₹13,278/gram to ~₹12,508/gram in just a few days signals a notable pull-back.
What’s Behind the Drop?
Several factors are contributing to the reversal:
1. Profit-Booking and Overheated Markets
With gold at record highs, many investors locked in gains. The rally had been driven strongly by safe-haven demand, but when the momentum softened, selling set in. Analysts in India caution against “chasing the rally”.
2. Global Currency & Interest Rate Dynamics
A stronger U.S. dollar or higher U.S. interest rates reduce the appeal of gold (which bears no yield). These global macro factors fed into the correction.
3. Festive Demand vs Supply Constraints
While domestic demand around festivals remained strong, prices had already climbed steeply. For instance, premiums in India reached high levels ahead of Dhanteras, pushing physical gold prices up. When the market sensed the peak, the pull-back followed.
4. Technical Levels & Market Sentiment
Markets often correct after rapid gains once key support levels are broken or when speculative positions unwind. The drop in per-gram rates from ~₹13,000+ to ~₹12,500+ fits such a pattern.
Data Snapshot (India)
- On 18 October: 24-carat gold ~ ₹13,278/gram.
- On 13 October: 24-carat gold ~ ₹12,540/gram, 22-carat ~ ₹11,495/gram.
- On 23 October: 24-carat gold ~ ₹12,508/gram, 22-carat ~ ₹11,465/gram. Goodreturns
- On 21 October (10 gm basis): ~ ₹1,30,860 per 10 gm for 24-carat. mint
What It Means for Investors and Consumers
- Consumers / jewellery buyers: The fall offers a slightly better window to buy physical gold vs the recent peak. But prices remain elevated making bargains unlikely.
- Investors: If you entered near highs, you may face paper losses or reduced upside. Some may use dips as buying opportunities, but caution is warranted.
- Market watchers: A sustained break below key levels (e.g., ~₹12,500/gram for 24K) could open room for further correction. But factors like inflation or geopolitical risk could reverse direction swiftly.
- Festive season context: With festivals like Dhanteras/Diwali, physical gold demand in India is seasonally high. However, prices this year were already at record levels, so demand may moderate if consumers expect better value later.
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Looking Ahead: Key Watch Points
- U.S. inflation data & interest-rate policy (since global gold demand is sensitive to these).
- Domestic demand trends: jewellery buying, investment demand (coins/bars), and festival momentum in India.
- Supply dynamics: premiums, import duty changes, and smuggling trends. (For example, smuggling in India surged amid high prices making supply tighter and premiums higher.)
- Technical/price support: Watching whether 24-carat gold holds above ₹12,500/gram and 22-carat above ~₹11,400/gram.
City-Wise Gold Prices Across India (As of 23 October 2025)
Gold prices across major Indian cities showed a marginal dip this week, tracking global weakness after hitting record highs earlier this month. As of Thursday, 23 October 2025, the average 24-carat gold price stood at around ₹12,508 per gram (₹1,25,080 per 10 grams) nationwide. In Mumbai, gold traded slightly higher at ₹12,722 per gram, while Delhi and Kolkata quoted around ₹12,510 per gram. Chennai, known for its strong festive demand, saw rates near ₹12,690 per gram, and Bengaluru prices hovered around ₹12,540 per gram.
In the 22-carat segment, prices ranged between ₹11,450 – ₹11,680 per gram across major metros. The small regional variations are primarily due to local demand-supply factors, octroi, and transportation costs. Jewellers report cautious buying ahead of Diwali as consumers anticipate further correction following the recent global gold price slide.
