Key Points
- Gold December futures on MCX opened at ₹1,21,148 per 10 grams on Friday, October 31, 2025, down 0.29% from the previous close of ₹1,21,508, later recovering to trade at ₹1,21,599
- Silver December futures fell 0.47% to ₹1,48,140 per kg at opening, touching a low of ₹1,47,942 before recovering to ₹1,49,330
- The decline in precious metals is attributed to the strengthening US dollar index crossing 99 marks and trading at 3-month highs following Federal Reserve meeting outcomes
- Internationally, spot gold traded at $4,007.59 per ounce (down 0.14%) while COMEX gold gained 0.05% to $4,017.9 per ounce, with bullion set for its third consecutive monthly gain despite weekly losses
- A temporary trade truce between the US and China on minerals and soybeans provided some relief but failed to eliminate long-term market uncertainty
New Delhi: Gold and silver prices experienced downward pressure on India’s Multi-Commodity Exchange (MCX) during Friday’s trading session, mirroring weakness in international bullion markets as the US dollar strengthened. The gold December 5 contract opened with a significant drop of ₹360 at ₹1,21,148 per 10 grams against the previous close of ₹1,21,508, initially touching a low of ₹1,20,880 before staging a recovery. By midday trading, gold futures had rebounded and were last seen trading at ₹1,21,599, registering a gain of ₹91 or 0.07% from the previous close. The February 2026 gold futures contract also gained momentum, rising by ₹271 or 0.22% to trade at ₹1,23,033 per 10 grams in business turnover of 2,323 lots.
Silver Mirrors Gold’s Volatile Session
Silver futures followed a similar trajectory during Friday’s trading, with the December 5, 2025, maturity contract starting the session in negative territory. The white metal opened with a loss of ₹700 at ₹1,48,140 per kg on the MCX against the previous close of ₹1,48,840, subsequently falling to the session low of ₹1,47,942. However, like gold, silver also staged a recovery and gained to trade at ₹1,49,330, marking a jump of ₹490 or 0.33% from the previous close. The volatility in silver prices reflected muted industrial demand and weak overseas prices weighing on sentiment, though the recovery suggested some bargain hunting by traders at lower levels.
Gold Prices Across Major Indian Cities
As of Friday, October 31, 2025, gold prices varied across major Indian cities based on local taxes, transportation costs, and regional demand patterns. In Chennai, 24-carat gold was priced at ₹1,23,280 per 10 grams (₹12,328 per gram), while 22-carat gold traded at ₹1,13,000 per 10 grams (₹11,300 per gram), making it the most expensive city for gold purchases. In Mumbai, the financial capital, 24-carat gold stood at ₹1,22,680 per 10 grams (₹12,268 per gram), with 22-carat gold at ₹1,12,450 per 10 grams (₹11,245 per gram). Delhi recorded 24-carat gold prices at ₹1,22,830 per 10 grams (₹12,283 per gram) and 22-carat gold at ₹1,12,600 per 10 grams (₹11,260 per gram).
Regional Gold Price Variations
Other major cities showed relatively uniform pricing for the precious metal. Kolkata, Bangalore, Hyderabad, Kerala, and Pune all recorded identical rates of ₹1,22,680 per 10 grams for 24-carat gold (₹12,268 per gram) and ₹1,12,450 per 10 grams for 22-carat gold (₹11,245 per gram). Ahmedabad saw marginally higher prices at ₹1,22,730 per 10 grams for 24-carat gold (₹12,273 per gram) and ₹1,12,500 per 10 grams for 22-carat gold (₹11,250 per gram). Jaipur matched Delhi’s pricing with 24-carat gold at ₹1,22,830 per 10 grams (₹12,283 per gram) and 22-carat gold at ₹1,12,600 per 10 grams (₹11,260 per gram). It is important to note that these prices exclude GST, making charges, and other applicable taxes that jewelers add to the final purchase price.
Silver Prices in Metropolitan Cities
Silver prices also reflected regional variations across India on Friday. In Delhi and Mumbai, silver was priced at ₹1,51,000 per kilogram, representing the prevailing market rate in the northern and western regions. According to alternate market data, silver was also available at ₹1,52,100 per kg in certain metropolitan areas, reflecting dealer-specific pricing and local demand-supply dynamics. The disparity in silver prices across different trading platforms highlights the importance of comparing rates before making purchases.
Strong Dollar Index Pressures Bullion
The primary factor behind Friday’s decline in precious metals was the strengthening US dollar, which crossed the 99 mark and reached three-month highs following the Federal Reserve’s meeting outcomes. Commodity analysts noted that the fall in precious metals followed the Fed’s cautious outlook on future rate cuts, which pushed the dollar higher and made gold less attractive for investors holding other currencies. A firm dollar increases the cost of dollar-denominated commodities like gold and silver for holders of other currencies in the global market, thereby dampening international demand. The dollar index held near its highest level in three months against its rivals, creating sustained pressure on bullion throughout the trading session.
Federal Reserve’s Cautious Rate Cut Stance
Market uncertainty regarding the Federal Reserve’s future interest rate trajectory has significantly impacted investor sentiment toward precious metals. The Fed’s recent cautious stance on implementing further rate cuts has reduced expectations for monetary easing in the near term, which traditionally supports gold prices. Jigar Trivedi, Senior Research Analyst at Reliance Securities, told PTI that “Gold prices were trading around USD 4,020 per ounce on Friday, set for a second straight weekly loss, pressured by fading expectations of Federal Reserve rate cuts and a US-China trade deal”. Higher interest rates increase the opportunity cost of holding non-yielding assets like gold, making interest-bearing instruments more attractive to investors.
Global Market Dynamics and Trade Tensions
International gold prices displayed mixed signals on Friday, with spot gold down 0.5% at $4,004 per ounce as of 0240 GMT, while US gold futures for December delivery remained steady at $4,016.70 per ounce. Despite the intraday weakness, bullion had gained 3.9% for the month of October, positioning it for a third consecutive monthly gain. A modest trade truce between the United States and China on minerals and soybeans brought temporary relief to global markets but failed to erase long-term uncertainty about the relationship between the world’s two largest economies. The trade agreement provided limited support to industrial metals but had minimal impact on gold’s safe-haven appeal.
Central Bank Buying Supports Long-Term Outlook
Despite short-term price pressures, the fundamental outlook for gold remains supported by robust central bank purchases. According to market data, central banks continued their heavy buying in Q3 2025, accumulating 220 tons of gold, with Kazakhstan and Brazil leading the purchases. This institutional demand from monetary authorities worldwide provides a strong floor under gold prices and suggests confidence in the metal’s long-term value preservation properties. Central banks typically increase gold holdings as a hedge against currency fluctuations and geopolitical uncertainties, reflecting concerns about the stability of the global financial system.
Technical Analysis and Support Levels
Market analysts have identified key technical levels that will determine gold’s near-term trajectory. Rahul Kalantri, VP Commodities at Mehta Equities Ltd, provided comprehensive technical guidance: “Gold has support at $3970-3940 while resistance at $4045-4075. Silver has support at $48.60-48.25 while resistance is at $49.55-50.00. In INR gold has support at Rs 1,21,470-1,20,880 while resistance at Rs 1,21,990-1,22,500. Silver has support at Rs 1,47,450-1,46,750 while resistance at Rs 1,49,740-1,50,880”. Traders expect gold to remain under pressure in the near term, with key support levels seen around ₹1,20,800 per 10 grams on the MCX. A break below this level could trigger additional selling pressure, while a move above resistance could signal renewed buying interest.
European Central Bank Decision Impact
The European Central Bank’s decision to keep interest rates unchanged during its recent policy meeting could potentially restrict further gains in the dollar index and provide some support to gold and silver prices. The ECB’s monetary policy stance, which contrasts with the Fed’s approach, creates divergence in global interest rate expectations and influences currency movements. This policy differential between major central banks adds complexity to the outlook for precious metals, as traders must navigate competing influences from different monetary authorities.
Festive Demand Provides Cushion
Despite the current weakness in prices, seasonal demand from Indian jewelers ahead of the ongoing festive season could provide some cushion to gold prices. India is the world’s second-largest consumer of gold, and domestic demand traditionally increases during the October-November wedding season and festivals like Diwali and Dhanteras. However, the recent rally to record highs earlier in October may have satisfied some pent-up demand, potentially limiting the magnitude of festive buying at current elevated price levels.
Profit-Booking After Recent Gains
The Friday decline also reflected profit-booking by investors following substantial gains in precious metals during recent sessions. After touching record highs in the domestic market earlier this month, gold and silver attracted selling pressure as traders locked in profits from their long positions. This technical correction is considered healthy by market participants as it allows the market to consolidate before potentially resuming its upward trajectory.
Gold Price Determination Factors
The daily determination of gold prices in India depends on multiple interconnected factors that create constant price fluctuations. Currency exchange rates between the Indian rupee and US dollar play a crucial role, as gold is internationally priced in dollars but sold in rupees domestically. Dollar fluctuations directly impact the rupee-denominated price of gold, with a stronger dollar typically translating to higher gold prices in India. Customs duties imposed by the Indian government on gold imports significantly affect domestic prices, with any changes in import tariffs immediately reflected in retail rates. International market movements, including trading activity on major exchanges like COMEX and the London Bullion Market, set the baseline price that Indian markets follow.
Essential Tips for Gold Buyers
Consumers planning to purchase gold should follow important guidelines to ensure authenticity and quality. Always buy certified gold hallmarked by the Bureau of Indian Standards (BIS), which provides government-backed assurance of purity. Every piece of hallmarked gold carries a 6-digit Hallmark Unique Identification Number (HUID), which is alphanumeric in format such as AZ4524. This unique identification code allows buyers to verify the authenticity and caratage of their gold through official BIS channels. Hallmarking makes it possible to determine the exact caratage of a particular gold item, protecting consumers from fraudulent practices and ensuring they receive the gold purity they pay for. Buyers should insist on proper invoices that include the HUID number, weight, purity, and making charges to maintain transparency and facilitate future resale if needed.
Market Outlook and Future Trajectory
Looking ahead, precious metals face competing influences that will determine their near-term direction. On one hand, the strong dollar, reduced expectations for Fed rate cuts, and improving trade relations between major economies could continue pressuring gold and silver prices. On the other hand, ongoing central bank purchases, persistent geopolitical uncertainties, and seasonal domestic demand from India provide fundamental support. The balance between these conflicting forces will likely result in range-bound trading in the near term, with significant moves requiring either a substantial shift in Fed policy expectations or a major geopolitical development. Investors should monitor key economic data releases and central bank communications for signals about the future trajectory of interest rates and currency movements.
