Gold and Silver Prices Correct on October 23 Amid Profit-Booking

Gold and silver prices in India saw a moderate decline on Thursday, October 23, as a wave of global profit-booking and a slight easing of geopolitical tensions prompted investors to take gains after a recent, spectacular rally. The price for 24-carat gold was quoted around ₹1,25,890 per 10 grams, while silver traded near the ₹1.60 lakh per kilogram mark, reflecting a short-term correction in the bull run for both precious metals.

The downturn comes after a period of intense upward momentum that saw gold prices reach all-time highs, driven by significant safe-haven buying. Traders and market analysts suggest this is a necessary price correction rather than a fundamental shift in the long-term bullish outlook for the commodities.

Key Price Levels: Gold and Silver

The latest indicative prices for different purities of gold, based on data from various financial sources, show a stabilisation from the record levels seen earlier in the week:

• 24-Carat Gold (999 Purity): $\text{₹1,25,890 per 10 grams}$
• 22-Carat Gold (Standard Jewellery): $\text{₹1,15,400 per 10 grams}$
• 18-Carat Gold: $\text{₹94,420 per 10 grams}$

Meanwhile, silver also experienced a downward adjustment:

• Silver (1 kg): $\text{₹1,60,000 per kilogram}$

It’s important to note that these rates are a general market average for bullion, and actual retail prices for jewellery will vary across cities due to local taxes, customs duties, making charges, and transportation costs.

Global and Domestic Market Drivers

The primary catalyst for the current price moderation is widespread profit-booking. After gold surged over 50% throughout the year—reaching an all-time high globally—investors are capitalising on the significant gains. This technical correction is typical following an extended, sharp rally.

Globally, the strengthening of the US Dollar and a firmer trend in Treasury yields have also put pressure on non-yielding assets like gold. A stronger dollar makes dollar-denominated commodities more expensive for international buyers, reducing demand.

Domestically, the period immediately following the intense festive buying of Dhanteras and Diwali typically sees a seasonal cooling of physical demand, adding a layer of domestic pressure to the international selling trend. Furthermore, a perceived easing of some global geopolitical tensions has slightly tempered the urgency for safe-haven assets.

City-Wise Rates: Where Prices Differ

While the overall market trend is downwards, prices for both gold and silver can fluctuate from one city to another, often influenced by regional demand and local levies.

City	24-Carat Gold (per 10 gm)	22-Carat Gold (per 10 gm)	Silver (per kg)
New Delhi	$\text{₹1,26,030}$	$\text{₹1,15,540}$	$\text{₹1,59,900}$
Mumbai	$\text{₹1,25,880}$	$\text{₹1,15,390}$	$\text{₹1,59,900}$
Kolkata	$\text{₹1,25,880}$	$\text{₹1,15,390}$	$\text{₹1,59,900}$
Chennai	$\text{₹1,25,880}$	$\text{₹1,15,390}$	$\text{₹1,74,900}$

Outlook: Is the Rally Over?

Market experts largely view this decline as a temporary pause. The underlying factors that fueled the massive rally—ongoing expectations of interest rate cuts by major central banks, sustained high demand from central banks globally, and lingering macroeconomic uncertainty—have not entirely dissipated.

For silver, the long-term outlook remains particularly robust due to its growing role as an industrial metal. Strong demand from green technologies like electric vehicles, solar panels, and electronics is expected to keep the structural supply deficit tight, providing a solid floor for prices despite short-term volatility.

Investors and consumers should consider the current dip as a buying opportunity, given that the long-term fundamental drivers for both gold and silver remain positive, positioning them as essential hedges against inflation and economic instability.