Gold and silver prices in India are commanding attention on Tuesday, 20 October 2026, as the country observes Dussehra. The Multi Commodity Exchange (MCX) kept its morning session shuttered due to the festive holiday, with trading in gold, silver, and other commodities set to resume at 5 pm IST.

MCX Closing Prices from Previous Session

In Monday's session, MCX gold futures for December delivery declined by ₹618, or 0.42 per cent, settling at ₹1,47,300 per 10 grams. Silver futures for December delivery ended largely flat, closing at ₹2,09,825 per kilogram.

According to data from bullion.co, 24-karat gold in Mumbai was priced at ₹1,47,340 per 10 grams, while 22-karat gold stood at ₹1,35,062 per 10 grams on Tuesday.

Strong One-Year Returns Despite Volatility

Despite recent price fluctuations, precious metals have delivered notable gains over the past year. Gold prices in India have risen more than 25 per cent since Dussehra last year, while silver has outpaced gold, generating returns of approximately 45 per cent over the same period. This makes both metals among the better-performing asset classes over the last twelve months.

Notably, the surge comes against a backdrop of global macro uncertainty, with investors historically rotating into precious metals during periods of elevated inflation and geopolitical stress.

International Market Pressures

On global exchanges, spot gold edged up 0.1 per cent to $4,144.15 per ounce, while spot silver advanced 0.6 per cent to $57.44 per ounce. The gains came despite significant headwinds: elevated US Treasury yields — driven partly by a recovery in US technology stocks reducing safe-haven bond demand — have weighed on non-yielding assets like gold.

Elevated crude oil prices have further complicated the picture, intensifying inflation concerns and reinforcing expectations that the US Federal Reserve could raise interest rates further. Higher rates increase the opportunity cost of holding gold, making the metal less attractive relative to yield-bearing assets.

Gold's October Consolidation and Longer-Term Context

International gold has largely held above $4,100 per ounce through October, recovering some stability after a decline of more than 6 per cent in September. This consolidation has persisted despite a stronger US dollar and elevated bond yields — a sign that underlying demand remains firm.

However, according to reports, the precious metal remains approximately 20 per cent below the levels it traded at before the US-Iran conflict began in late February, underscoring the scale of the correction from its earlier highs.

What to Watch

Investors are closely tracking the Federal Reserve's monetary policy direction as policymakers continue efforts to contain inflation. Expectations around future rate decisions are emerging as the primary driver of gold's near-term trajectory in international markets. MCX trading resumes on Tuesday evening, and the festive-season demand environment in India could provide a domestic floor even if global signals remain mixed.