Gold and silver prices continued to decline on October 23, potentially offering relief to buyers preparing for Dhanteras and Diwali. However, uncertainty over global inflation, crude oil prices and the US Federal Reserve's next policy decision has left markets volatile, making it difficult to determine whether prices will fall further.
At the time of the reported market snapshot, MCX gold was trading at ₹1,42,611 per 10 grams, down 0.49%, while MCX silver stood at ₹1,96,198 per kilogram, declining 1.71%.
The fall comes as rising energy prices renew concerns that interest rates in the United States could remain elevated for longer. Investors are also monitoring the Federal Reserve's October 27–28 meeting and upcoming inflation data for clues about the direction of precious metal prices.
Why Are Gold and Silver Prices Falling?
Higher crude oil prices have raised concerns about inflation, potentially reducing the likelihood of near-term interest rate cuts. Precious metals do not pay interest or dividends, making them relatively less attractive when interest rates remain high.
Dr Renisha Chainani, Chief Research Officer at Augmont, said gold and silver were heading towards their sharpest weekly decline in more than four months. She attributed the pressure to rising oil prices and investor caution ahead of the Federal Reserve meeting.
Oil prices reportedly rose around 4% to a five-month high following Houthi attacks on Saudi Arabia, raising concerns about energy supply disruptions. Higher energy costs can intensify inflationary pressure and influence central bank decisions.
Where Could Gold and Silver Prices Head Next?
Chainani identified potential support zones of $3,950–$4,000 for gold and $50–$55 for silver, suggesting the metals could stabilise before recovering. She also said gold would need to stay above $4,200 and silver above $62 for their upward trends to resume.
These are analyst estimates, not guaranteed price levels. Domestic futures trading has also shown weakness, with MCX gold facing immediate resistance around ₹1,43,000–₹1,43,700, while silver has slipped below the ₹2,00,000–₹2,02,000 support zone, according to market commentary cited in the source.
The next direction will depend on inflation data, oil prices and the Federal Reserve's policy signals.
Should You Buy Gold and Silver Now or Wait?
For buyers planning festive purchases, falling prices may provide an opportunity, but trying to identify the exact market bottom is difficult.
- For jewellery buyers: Consider purchasing within your budget and compare making charges, taxes and final prices across jewellers.
- For long-term investors: Staggering purchases over time can spread the buying price across different market levels, although it cannot guarantee profits or prevent losses.
- For futures traders: Exercise caution, as volatility and leveraged positions can magnify losses.
With Dhanteras and Diwali approaching, the practical approach is to focus on affordability and financial goals rather than reacting to every market movement.
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