India’s gold and silver markets are experiencing one of their steepest corrections in more than a decade. Both metals had touched record highs a while back this month and have fallen sharply on a combination of global economic optimism, profit-booking, and a stronger dollar. Experts are unsure, though, whether the decline is the end of the rally or just a healthy market correction.
What Caused the Sudden Crash
Following weeks of incessant increases that saw gold above ₹1.31 lakh per 10 grams and silver at almost ₹1.78 lakh per kilogram, prices plummeted about 6-8% this week. The plunge came following news of advancement in U.S.-China talks and the conclusion of a new India-U.S. trade deal that alleviated global economic tension.
Sugandha Sachdeva, the founder of SS WealthStreet, said the correction “was inevitable after the record highs” as investors shifted to equities when the safe-haven appetite wore off. Gold fell close to 10% around the world from its $4,379 peak to about $4,000 an ounce, while silver fell from $54.5 to $48.5 per ounce.
Current Price Levels Across India
As of today on Thursday, October 23:
- 24K gold was valued at about ₹1,25,890 per 10 grams, decreasing by ₹8,100 in a week.
- 22K gold was quoted close to ₹1,15,400 per 10 grams.
- Silver settled at ₹1,59,900 per kilogram, down 12% from mid-October.
This is a loss of almost ₹7,700 per 10 grams of gold in just six trading sessions.
Expert Forecasts: Short-Term Weakness, Long-Term Support
Analysts are anticipating the slump to last for a short while, with gold potentially testing ₹1,24,000 for 10 grams before levelling off.
ABC Refinery’s Nicholas Frappell noted that “the rally had become technically overstretched,” labelling the current correction “necessary for sustainable future gains”.
ING and Bank of America economists concur that although the short-term direction of gold looks bearish as a result of the rising dollar, the long-term outlook for gold is positive as central banks keep stockpiling the metal in the face of dollar diversification.
Global Outlook and Post-Diwali Trends
The Economic Times and India Today analyses indicate that the correction has also been deepened by a record ETF outflow, the highest since May 2025 due to retail investors shifting funds into riskier assets.
Yet analysts expect a slow recovery in November if the U.S. Federal Reserve indicates slower interest rate hikes or if inflation metrics increase once more. HSBC expects gold to regain as high as $4,400–$4,800 per ounce by mid-2026, depending on ongoing central bank support and renewed global uncertainty.
Should Investors Buy the Dip?
The majority of strategic advisers are recommending “cautious accumulation” instead of aggressive purchases. They recommend watching the ₹1,24,000 support level in gold and ₹1,45,000 floor in silver for new entry points.
Experts opine that the current crash is rather a “healthy technical correction” rather than the beginning of a sustained fall, and can lay the ground for a more sustainable upswing through 2026.
