Gold and silver prices started slightly lower on Thursday following a recent surge to all-time highs. The decrease is attributed to profit-taking amid global market volatility.
At around 9:45 am, gold December futures on the Multi Commodity Exchange (MCX) were down 0.37% at Rs 1,22,749 per 10 grams, while silver December futures slipped 0.89% to Rs 1,48,524 per kilogram.
In the previous session on October 8, gold for December delivery had reached a record Rs 1,23,450 per 10 grams, and silver hit a fresh peak of Rs 1,50,282 per kilogram.
Despite the minor pullback on Thursday, both metals are still trading near their record highs, with the decline mainly attributed to profit-booking after the recent rally.
Gold prices have seen significant gains this year, with domestic spot gold climbing over 50% in 2025. This increase is supported by various global factors such as geopolitical tensions, expectations of a U.S. Federal Reserve rate cut, a weaker dollar, strong central bank purchases, and steady inflows into gold exchange-traded funds (ETFs).
According to Darshan Desai, CEO of Aspect Bullion & Refinery, the slight drop in gold prices was anticipated after a strong rally above $4,000 per ounce. He mentioned that the decline was driven by profit-taking and improved sentiment following positive developments in the Middle East.
Market experts believe that gold prices are poised to continue their upward trajectory in the long term. They anticipate gold to surpass Rs 1,25,000 per 10 grams by the end of 2025, supported by expectations of Fed rate cuts and ongoing global uncertainties.
Rahul Kalantri, VP of Commodities at Mehta Equities Ltd., highlighted the strength shown by both gold and silver in recent weeks. He pointed out that gold surpassed $4,050 per ounce and silver exceeded $49 per ounce, levels not seen since 2011. This rally is fueled by robust central bank demand and a growing preference for safe-haven assets through ETFs.
Kalantri emphasized that despite short-term volatility and profit-taking, the overall outlook for gold and silver remains positive. With hopes for rate cuts and lingering geopolitical tensions, investors are likely to maintain interest in these safe-haven assets.
In terms of technical levels, gold has support at Rs 1,22,500–Rs 1,21,780 and resistance at Rs 1,23,950–Rs 1,24,600. Silver’s support ranges between Rs 1,48,750–Rs 1,47,850 with resistance around Rs 1,50,850–Rs 1,51,750.
In conclusion, experts expect some short-term fluctuations, but the general sentiment for gold and silver remains optimistic. As uncertainties persist and rate-cut expectations grow, investors are advised to consider these precious metals for potential long-term gains.