Post-Diwali Update: Gold and Silver Prices Inch Higher on MCX Amid Global Challenges The Bridge Chronicle
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Post-Diwali Update: Gold and Silver Prices Inch Higher on MCX Amid Global Challenges

Experts say that despite short-term weakness, bullion is supported by long-term factors like central bank gold buying, geopolitical tensions, and anticipated lower interest rates.

Manaswi Panchbhai

Gold and silver prices edged up slightly on October 23, but the bullion market stayed cautious amid ongoing global uncertainties. At 10:33 am on the Multi Commodity Exchange (MCX), gold mini November futures were trading at ₹1,21,873 per 10 grams, up 0.66%, while silver mini November futures rose 0.38% to ₹1,48,148 per kilogram.

The previous day, gold mini futures closed at ₹1,21,069 and silver at ₹1,47,583. These slight increases barely counterbalance the significant global drop observed this week. Worldwide, gold is facing downward pressure, nearing the $4,000 per ounce mark. The metal's value decreased as investors became wary following a prolonged surge to unprecedented levels.

Understanding Bullion

Bullion refers to precious metals like gold and silver in bulk form, typically bars, ingots, or coins, valued mainly by their weight and purity rather than face value. It’s often used for investment, trading, or reserves by governments and institutions.

Global Pressures Affecting Gold and Silver

  • Profit-Taking After Record Highs: Following a major surge, investors started securing their gains, resulting in significant drops. For example, on October 21, 2025, gold futures fell by $248.70, closing at $4,087.70 per troy ounce, marking the largest one-day drop since 2013. Silver futures saw an even more pronounced decrease, dropping 7.2% to $47.45 per ounce, while spot prices fell nearly 7.5% to approximately $47.12 per ounce.

  • Strengthening U.S. Dollar: The appreciation of the U.S. dollar increased the cost of commodities priced in dollars for international purchasers, exerting additional downward pressure on gold and silver prices.

  • Geopolitical Tensions: The prospect of easing trade tensions between the United States and China diminished the attractiveness of safe-haven assets such as gold and silver.

  • Demand Slowdown:The decline in physical demand from major Asian purchasers, especially India, following Diwali, added to the selling pressure and caused a worldwide impact.

Despite a minor price increase on October 23, these combined elements have kept the sentiment around bullion cautious.

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