On Thursday, October 23, 2025, 24‑karat gold in India softened to ₹12,508 per gram, a modest retreat from the week’s peak levels. The pullback was felt across major hubs – Mumbai, Kolkata and Dehradun – and came as traders chased profits after a sharp rally. The dip was confirmed by 5paisa, the Mumbai‑based brokerage, which logged 24K at ₹12,508, 22K at ₹11,465 and 18K at ₹9,381 per gram as of 11:54 AM UTC.
Why the Correction Happened
Analysts point to two converging forces. First, domestic festive‑season buying – especially ahead of Chhath PujaKolkata – kept demand buoyant. Second, investors who rode the recent surge on the Multi Commodity Exchange (MCX) opted to lock in gains. "Gold and silver prices are exhibiting weakness following correction and profit‑booking," said Abhilash Koikkara, Head of Forex & Commodities at Nuvama Professional Clients Group. He added that MCX Gold had slipped from a historic high of ₹1,31,000 to around ₹1,27,000, opening the door for further downside if selling pressure persists.
Numbers That Matter
- 24K gold: ₹12,508/g (₹1,25,080 per 10 g) – down ₹810 from the previous day.
- 22K gold: ₹11,465/g – a ₹750 fall for 10 g, translating to ₹7,500 cheaper per 100 g.
- 18K gold: ₹9,381/g – down ₹610 for 10 g.
- Silver: ₹159/g in Kolkata, a ₹1 drop from ₹160/g.
- Key support for MCX Gold: ₹1,24,000; resistance: ₹1,31,000.
Market Sentiment Across Cities
In Mumbai, the same price structure held, reflecting a uniform market response. Over in Kolkata, the decline was more pronounced, with traders noting a ₹750 dip in 22K gold per 10 g – enough to sway price‑sensitive buyers. Further west, GoodReturns reported identical rates for Dehradun, underscoring that the correction was nationwide rather than a regional blip.
What Analysts Are Saying
Beyond Koikkara's cautionary tone, Angel One highlighted the dual impact of profit‑booking and easing global geopolitical tensions. "The metal remains a hedge, but short‑term traders are taking chips off the board," a senior strategist at the firm remarked.
Meanwhile, market watch‑dogs at MCX note that the next decisive move could hinge on the U.S. Federal Reserve’s interest‑rate outlook. A dovish stance would likely buoy gold, whereas hawkish signals could push the price back toward the ₹1,24,000 support zone.
Impact on Retail Buyers and Investors
For Indian households, the modest price dip is a mixed blessing. On one hand, cheaper grams ease the budget for wedding jewellery – a peak driver during the festive period. On the other, the correction reminds investors that gold’s rally isn’t immune to market psychology. Retailers in Mumbai’s Zaveri Bazaar reported steady footfall, citing that “customers are still keen to lock in gold now that the price has softened a bit.” In contrast, a few Kolkata jewellers mentioned a slowdown in large‑ticket purchases, as buyers wait to see if the downward trend continues.
Looking Ahead – What’s Next?
The road ahead will be shaped by three variables: domestic festive demand, global monetary policy, and the pace of profit‑booking. If the upcoming Diwali season ignites a buying frenzy, we could see prices rebound toward the ₹1,31,000 ceiling. Conversely, a prolonged sell‑off by speculative traders could push the market to test the ₹1,24,000 floor within the next week. In any case, experts agree that gold’s long‑term bias remains positive. As inflationary pressures linger and the rupee faces external headwinds, the yellow metal continues to serve as a trusted store of value for Indian families.
Key Takeaways
- Gold eased to ₹12,508 per gram on Oct 23, 2025, across Mumbai, Kolkata, and Dehradun.
- Profit‑booking after a recent rally is the primary catalyst for the dip.
- Festive‑season demand, especially for Chhath Puja, keeps the market from a sharper slide.
- Analysts spot support at ₹1,24,000 and resistance at ₹1,31,000 for MCX Gold.
- Long‑term outlook stays bullish as gold remains a hedge against inflation.
Frequently Asked Questions
How will the price dip affect wedding jewellery shoppers?
A modest drop of around ₹800 per 10 g for 24K gold makes wedding sets slightly more affordable, especially for middle‑income families. Retailers report a steady flow of customers who view the correction as a buying opportunity, though some high‑end buyers may still hold back until prices stabilise.
What is the next technical support level for MCX Gold?
Analysts, including Koikkara, identify ₹1,24,000 as the key support zone. If selling pressure persists, prices could test that level within the coming week.
Will global interest‑rate decisions influence Indian gold prices?
Yes. A dovish stance from the U.S. Federal Reserve tends to lower the dollar’s strength, supporting gold. Conversely, a hawkish outlook can boost the dollar and pressure gold prices downward, making the next Fed meeting a focal point for traders.
How does the Chhath Puja festival drive gold demand?
Chhath Puja, observed mainly in Bihar, Uttar Pradesh and parts of Jharkhand, involves offering gold jewellery as part of traditional rituals. The holiday’s timing in late October spurs a surge in purchases, cushioning price falls even when market sentiment turns bearish.
Is silver likely to follow gold’s price pattern?
Silver slipped to ₹159 per gram, mirroring gold’s modest retreat. However, silver often reacts more sharply to industrial demand and global risk sentiment, so its trajectory could diverge if those factors shift.