Gold Prices Plunge to 3-Week Low: 24K Gold Drops Rs 1 Lakh in 10 Days
India’s glittering gold rally has abruptly lost its shine. After months of record-breaking highs, gold prices have fallen to a three-week low, with 24K gold tumbling nearly Rs 1 lakh per 100 grams in just 10 days, according to a report by Goodreturns.
On Tuesday, October 28, 24K gold dropped to Rs 12,082 per gram, down from Rs 13,084 on October 18. 22K gold fell by Rs 225 to Rs 11,075 per gram, and 18K gold slipped to Rs 9,062 per gram. This marks a dramatic cooling after one of the strongest rallies in decades, which had pushed prices up more than 60% in 2025, driven by global uncertainty, trade tensions, and safe-haven demand.
The latest correction comes ahead of the US Federal Reserve meeting and renewed optimism around Donald Trump–Xi Jinping trade talks, which have eased geopolitical fears and strengthened the US dollar, both traditionally negative for gold. Gold futures for December delivery closed at Rs 1,20,957 per 10 grams on the Multi Commodity Exchange (MCX), while global spot gold settled around $3,925 per ounce, according to Trading Economics.
Silver, too, joined the correction, slipping to Rs 151 per gram, or Rs 1.51 lakh per kg, from highs of nearly Rs 2 lakh earlier this month. Analysts say supply constraints and strong industrial demand had supported silver’s rise earlier this year, but with easing global tensions, prices have softened.
Market analysts warn that volatility may persist as investors digest policy cues from the Fed and trade developments. “The recent dip reflects profit-booking and a strong dollar,” said Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA). “While gold remains a safe haven, short-term bias looks guarded.” Motilal Oswal analysts added that the Fed’s policy stance could determine gold’s next move: “This dip might offer long-term investors a buying opportunity, balancing near-term volatility with gold’s role as a hedge in uncertain times.”
City-wise gold prices for 24K per gram are as follows: - Delhi: Rs 1,209.6 - Mumbai: Rs 1,208.1 - Chennai: Rs 1,208.1 - Kolkata: Rs 1,208.1 - Bangalore: Rs 1,208.1 - Hyderabad: Rs 1,208.1 - Jaipur: Rs 1,209.6 - Lucknow: Rs 1,209.6
At the London Bullion Market Association’s conference in Kyoto this week, experts noted that despite the correction, long-term sentiment remains bullish, with some predicting gold could approach $5,000 per ounce in the next year. For now, traders say the Rs 12,000 level will be a key psychological support for Indian gold buyers.
With the festive demand behind and the global macro picture shifting, analysts recommend a “buy-on-dips” approach, but only for investors with a longer time horizon. “Gold’s fundamentals remain intact,” said Chris Weston of Pepperstone Group. “The recent unwinding may have run its course, and buyers are stepping in near $3,900.” The yellow metal’s glitter may have dulled for now, but seasoned investors know, in times of global uncertainty, gold rarely stays down for long.
