Gold Prices Dip Amid Global Cues, Silver Shines Brighter: 24K Gold Falls ₹378 to ₹1,16,954 per 10g; Silver Jumps ₹490 to ₹1.45 Lakh per kg
Festive Demand and US Economic Jitters Drive Mixed Trends as Investors Eye RBI Policy and Upcoming Diwali Rush
Bhopal: In a mixed session for the precious metals market, gold prices in India edged lower on Thursday, October 3, 2025, reflecting a pullback from recent record highs amid stabilizing global cues and profit-taking ahead of the festive season. The benchmark 24-karat gold declined by ₹378 to settle at ₹1,16,954 per 10 grams, while silver bucked the trend with a sharp ₹490 gain, trading at ₹1,45,000 per kilogram. This divergence highlights silver’s resilience, fueled by industrial demand and its relative undervaluation against gold, even as the yellow metal consolidates after a stellar run-up earlier in the week.
Market Snapshot: Gold’s Correction vs. Silver’s Surge
Domestic bullion markets opened on a cautious note, with gold facing downward pressure from a stronger US dollar and easing geopolitical tensions in the Middle East. Multi-Commodity Exchange (MCX) data showed October gold futures slipping 0.32% to ₹1,16,410 per 10 grams by close, down from the previous day’s peak near ₹1,17,890. In physical markets, major trading hubs like Mumbai, Delhi, and Kolkata mirrored this dip, with 22-karat gold also falling ₹345 to ₹1,07,450 per 10 grams.
Silver, however, stole the spotlight, climbing 0.34% on MCX to ₹1,45,384 per kg, up from ₹1,44,894. The metal’s rally was broad-based, with spot prices in key cities like Chennai and Hyderabad registering gains of up to ₹500 per kg. Over the past month, silver has outperformed gold by a wide margin, surging nearly 18% globally and hitting a 14-year high of $47.41 per troy ounce internationally, driven by robust demand in electronics, solar panels, and EVs.
| Metal | Price per 10g/kg (Today) | Change | Previous Close |
|---|---|---|---|
| 24K Gold | ₹1,16,954 (10g) | -₹378 | ₹1,17,332 |
| 22K Gold | ₹1,07,450 (10g) | -₹345 | ₹1,07,795 |
| Silver | ₹1,45,000 (1kg) | +₹490 | ₹1,44,510 |
Prices as per India Bullion and Jewellers Association (IBJA) for major cities; variations may occur due to local premiums.
Key Drivers Behind the Price Movements
Gold’s dip comes after a blistering rally that saw it touch a lifetime high of ₹1,20,000 per 10 grams on September 30, propelled by safe-haven buying amid US government shutdown fears and a weakening rupee. However, with the dollar index rebounding and US non-farm payroll data due later this week, traders opted for profit-booking. Analysts note that the Gold-Silver ratio, which compressed to around 80 earlier this month, is now rebounding toward 84-85, signaling potential further upside for silver relative to gold in the near term.
Silver’s strength is underpinned by its dual role as both a precious and industrial metal. With global industrial consumption projected to rise 5% in 2025—largely from green energy applications—investors are diversifying into silver as a cheaper alternative to gold. In India, where silver demand spikes during festivals for coins and utensils, the ongoing Navratri season has added to the bullish momentum. “Silver’s attractive valuations and strong fundamentals make it a standout performer this festive quarter,” said a Mumbai-based bullion trader.
Festive Season Impact and Investor Sentiment
As India gears up for Dussehra and Diwali, physical demand for gold remains subdued due to the price correction, but jewelers report steady inquiries for lighter ornaments and coins. The recent 45% year-to-date surge in gold (from ₹80,000 levels in early 2025) has prompted many buyers to wait for deeper dips, potentially around ₹1,15,000. Conversely, silver’s affordability is drawing first-time investors, with exchange-traded funds (ETFs) seeing inflows of over ₹500 crore in September alone.
Globally, spot gold hovered around $3,890 per ounce, up marginally but off intraday highs, while silver’s 18.2% monthly gain underscores its outperformance. The Reserve Bank of India’s upcoming Monetary Policy Committee (MPC) meeting on October 7-9 is in focus, with expectations of a steady repo rate at 5.50% providing a supportive backdrop for metals.
Outlook: What Lies Ahead?
Looking forward, experts predict gold could test $3,950-$4,000 per ounce by year-end, translating to ₹1,20,000-₹1,22,000 domestically, barring major US Fed surprises. Silver, with its bullish technicals, may push toward ₹1,50,000 per kg if industrial demand holds firm. “Buy on dips for gold, accumulate silver for the long haul,” advises a leading analyst from Kotak Securities.
In summary, today’s price action reflects a market at a crossroads—gold pausing to catch its breath, silver accelerating ahead. As festive fervor builds, savvy investors are positioning for volatility, balancing tradition with opportunity in these glittering assets.
