MCX Gold and Silver Prices Dip, City-Wise Rates Track Global Correction

Precious metal prices in the Indian market witnessed a downward correction today, Tuesday, October 28, 2025, mirroring a soft trend in the international market. The decline comes as a reaction to recent global rallies, with profit-booking by traders and a cautious market sentiment ahead of key global economic data and central bank meetings.

MCX Price Movement: A Look at the Futures Market

Trading on the Multi Commodity Exchange (MCX) reflected the weak global sentiment, with both gold and silver futures showing marginal declines as of the latest update.

• MCX Gold Futures (December): Prices for December delivery were seen trading marginally lower. The recent dip suggests a corrective phase following the metal’s ascent to record high levels earlier this month. Investors are trimming positions at higher price points as they look for fresh cues on the global economic landscape.
• MCX Silver Futures (December): Silver futures also traded in the red, with the decline extending a pattern of profit-booking from its multi-year highs. Being a dual-purpose metal (precious and industrial), silver’s movement is currently dictated more by the safe-haven demand outlook, which has softened slightly.

Key takeaway: The current price action indicates a cooling down from the aggressive rally observed in the past few weeks, a period largely driven by safe-haven demand amid heightened geopolitical tensions and central bank buying.

City-Wise Gold and Silver Rates Today

The price of physical gold and silver across major Indian cities generally follows the trend set by the MCX futures and the international spot price, adjusted for local factors like transportation costs, local taxes (like GST), and making charges. Today, the slight moderation in futures is reflected in the retail prices for different karats.

Note: The above rates are indicative retail prices, excluding GST, TCS, and making charges. Prices may vary slightly across different jewellers.

Global Factors Driving the Dip

The dip in domestic prices is primarily a reflection of the global bullion market, which has seen prices pull back from record levels. Several international developments are influencing this trend:

1. Profit Booking: Following gold’s historic rise, investors are locking in gains, leading to a natural technical correction in the market.
2. US Dollar Strength: A stronger US Dollar ($) makes dollar-denominated gold more expensive for holders of other currencies, which tends to dampen demand and push prices down.
3. Monetary Policy Watch: Markets are highly attentive to signals from the US Federal Reserve (US Fed) regarding interest rates. Expectations of future interest rate movements—which impact the opportunity cost of holding non-yielding assets like gold—continue to add volatility.
4. Easing Geopolitical Tensions (Intermittently): Any sign of de-escalation in global conflicts or improved trade relations can reduce the demand for gold as a “safe-haven” asset, putting downward pressure on its price.

Outlook for Investors and Buyers

For Indian buyers, especially ahead of the non-stop festive and wedding season demand, a dip in prices is often viewed as a buying opportunity.

Long-Term Positive Bias: Despite the short-term correction, the long-term outlook for gold remains generally positive. Persistent global economic uncertainties, continued central bank purchases, and the metal’s historical role as a hedge against inflation and currency depreciation are expected to provide strong underlying support for the prices.

Short-Term Volatility: Experts predict that gold and silver prices are likely to remain volatile in the near term, trading within a broad range, as traders await definitive cues from global economic data, particularly the delayed US Consumer Price Index (CPI) report, which is crucial for determining the inflation and interest rate trajectory.