Gold Prices Fall: City-Wise Rates Updated as Price Hits ₹1,28,000

Gold Prices Drop Below ₹1,28,000: Check Rates in Your City

On October 22, 2025, gold prices in India fell below ₹1,28,000 per 10 grams for 24-carat gold, driven by easing US-China trade tensions and profit-taking after a record rally. In Mumbai, 24-carat gold was priced at ₹1,27,200 per 10 grams, while 22-carat gold stood at ₹1,16,600. Silver prices also declined, reaching ₹1,63,900 per kg. These rates, excluding GST and making charges, reflect a volatile market as investors await US inflation data, which could further influence gold rate today trends across major Indian cities.

The global market saw spot gold drop by 0.4% to $4,109.19 per ounce, with a significant 5% decline on Tuesday, marking the steepest fall since August 2020. This article explores the latest gold and silver prices in India, the factors driving these changes, and the broader implications for investors and consumers during the festive season.

Gold and Silver Prices Across Major Indian Cities

Gold prices in India vary slightly across cities due to local taxes and market dynamics. Below is a detailed table of 22-carat and 24-carat gold prices per 10 grams, as well as silver prices per kg, in key cities on October 22, 2025 (excluding GST and making charges):

These prices reflect the market’s response to global economic shifts, with investors closely monitoring upcoming US inflation data for further cues on gold rate trends.

Silver Shortages Amid Festive Demand

India’s festive season has triggered a surge in silver demand, particularly for jewelry, leading to a global supply crunch. Reports indicate that London is facing significant silver shortages due to India’s unprecedented buying spree. The demand is driven by cultural traditions, with silver being a popular choice for festive purchases and gifting during occasions like Diwali.

The global silver market is also strained by the solar industry, which is outstripping supply by an estimated 678 million ounces. This imbalance has heightened concerns about availability, pushing investors and consumers to act swiftly to secure silver assets during the festive season.

Factors Influencing Gold Prices in India

Several factors drive gold prices in India, including international market rates, import duties, taxes, and exchange rate fluctuations. The recent decline in gold prices is attributed to easing geopolitical tensions, particularly between the US and China, which has reduced the safe-haven appeal of gold. Additionally, profit-taking by investors after a record rally has contributed to the price drop.

Gold holds immense cultural and financial significance in India, serving as a preferred investment and a key element in weddings and festivals. The dynamic nature of the market requires investors to stay vigilant, monitoring global economic indicators and local factors like taxes to make informed decisions.

Global Market Trends and Gold Prices

In the international market, spot gold fell 0.4% to $4,109.19 per ounce as of October 22, 2025, following a significant 5% drop the previous day—the largest since August 2020. US gold futures for December delivery, however, saw a slight recovery, rising 0.4% to $4,124.10 per ounce. These fluctuations reflect investor caution ahead of US inflation data, which could influence the Federal Reserve’s monetary policy and impact gold prices globally.

The interplay between global economic conditions and local demand in India creates a complex pricing environment. Investors are advised to track international trends, as they directly affect domestic gold rates, particularly during periods of economic uncertainty.

Cultural and Financial Significance of Gold in India

Gold is more than an investment in India; it is a cultural cornerstone, deeply embedded in traditions and celebrations. During festivals like Diwali and weddings, gold purchases surge, driven by its symbolic value as a harbinger of prosperity and good fortune. The recent price drop below ₹1,28,000 may encourage buyers to capitalize on the opportunity, particularly during the festive season.

However, the financial aspect of gold cannot be overlooked. As a hedge against inflation and economic uncertainty, gold remains a preferred asset for Indian investors. The current market dip may prompt strategic purchases, but experts caution that prices could fluctuate further based on global economic developments.

Silver’s Rising Demand and Supply Challenges

The silver market is experiencing unprecedented demand in India, fueled by the festive season and the growing popularity of silver jewelry. This surge has led to a global supply shortage, with London facing significant constraints. The demand from India, combined with the solar industry’s consumption, has created a deficit of 678 million ounces, according to industry reports.

Silver’s affordability compared to gold makes it a popular choice for gifting and investment, particularly during festivals. However, the supply crunch could drive prices higher in the coming months, impacting both consumers and industries reliant on silver, such as electronics and renewable energy.

Investment Strategies Amid Price Volatility

The recent decline in gold and silver prices presents both opportunities and risks for investors. For those looking to invest, the current dip below ₹1,28,000 for 24-carat gold could be an ideal entry point, especially ahead of the festive season when demand typically spikes. However, experts recommend a cautious approach, advising investors to monitor upcoming US inflation data and global market trends.

Diversifying investments across gold, silver, and other assets can help mitigate risks associated with price volatility. Long-term investors may benefit from holding gold as a safe-haven asset, while short-term traders should stay updated on market indicators to capitalize on price movements.

Future Outlook for Gold and Silver Prices

The outlook for gold and silver prices remains uncertain, with several factors at play. The upcoming US inflation data could influence the Federal Reserve’s interest rate decisions, potentially affecting gold’s appeal as a non-yielding asset. Geopolitical developments, including US-China trade relations, will also play a critical role in shaping market sentiment.

In India, the festive season is expected to sustain demand for both gold and silver, despite the current price dip. The silver supply shortage could lead to price increases, while gold prices may stabilize or rise depending on global economic conditions. Investors and consumers are advised to stay informed and consult with financial experts to navigate the dynamic precious metals market.