Oct 29, 2025 - After several months of strong gains, prices of gold and silver are now falling sharply. Gold has dropped about 11% from its record high in the international market. Meanwhile, silver has also fallen more than 16% from its peak.

In India, the prices of both precious metals have been continuously declining. Since Dhanteras, gold has fallen by Rs 12,000 and silver by Rs 31,000. On Tuesday, in the Jaipur bullion market, gold and silver prices extended their losses further. Gold fell by Rs 3,400 to Rs 1,22,600 per 10 grams, and spot silver plunged Rs 5,500 to Rs 1,47,500 per kilogram.

Traders are now booking profits amid changing global cues. Experts believe that one of the reasons for the metals losing their festive shine could be the drop in safe-haven demand. US-China trade discussions may have limited safe haven flows to gold. After a reduction in trade tensions between the two nations, investors are moving money out of the bullion and into the stock market and other higher-risk investments.

Another reason could be strengthening of the US dollar ahead of the Federal Reserve meeting and on the back of strong quarterly results from US companies. Additionally, some say that the current drop in the bullion prices is a price correction after the sharp rally.

Meanwhile, traders are keeping an eye on this week’s Federal Reserve meeting, where another interest rate cut is expected. Generally, a rate cut supports gold prices, but if investors remain confident about global growth, the impact may be limited. Also, no major policy changes are expected this week from the European Central Bank or the Bank of Japan.

Some believe the current decline could be temporary. If global uncertainties resurface or central banks signal more rate cuts, the yellow and white metals may regain strength.

With Media Inputs