Why Are Gold and Silver Prices Dropping on MCX?
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Synopsis
In a surprising turn of events, gold and silver prices have dipped on the MCX due to profit booking after reaching record highs. With market dynamics constantly evolving, experts foresee continued fluctuations in precious metal prices. Stay tuned to discover the underlying factors influencing this trend and what the future holds for investors.
Key Takeaways
- Gold and silver prices fell due to profit booking.
- MCX Gold December futures down 0.34 percent.
- MCX Silver December futures down 0.75 percent.
- Gold prices have risen over 50 percent this year.
- Experts predict further increases in gold prices.
Mumbai, Oct 9 (NationPress) Gold and silver prices experienced a decline during early trading on Thursday on the Multi Commodity Exchange (MCX), as traders engaged in profit-taking following record highs reached in the previous session.
As of approximately 9:15 am, MCX Gold December futures were down by 0.34 percent to Rs 1,22,789 per 10 grams, whereas MCX Silver December futures dropped 0.75 percent to Rs 1,48,738 per kg.
In the previous session, gold futures for December delivery peaked at an unprecedented Rs 1,23,450 per 10 grams, while silver reached a new high of Rs 1,50,282 per kg.
This year, gold prices have witnessed a significant uptick, with domestic spot prices soaring more than 50 percent thus far.
The remarkable increase is attributed to global political and economic uncertainties, anticipation of interest rate reductions by the US Federal Reserve, a weakening US dollar, substantial central bank purchases, and strong inflows into gold exchange-traded funds (ETFs).
Market analysts anticipate that despite some short-term fluctuations and profit-taking, gold prices are likely to ascend in the upcoming months.
They project that gold could exceed Rs 1,25,000 per 10 grams by the close of 2025, bolstered by rate cut expectations and concerns surrounding US trade tariffs.
“By year-end, gold on the MCX could approach Rs 1,25,000–Rs 1,28,000 per 10 grams, while silver may challenge Rs 1,55,000–Rs 1,60,000 per kg, assuming the US Federal Reserve implements one or two rate cuts and the dollar remains under pressure,” added market experts.
“Gold surged above $4,000 per ounce -- a 53 percent year-over-year increase -- as investors sought safe havens amid governmental shutdowns and policy uncertainties,” analysts reported.
The Dollar Index climbed to 98.90 due to political turmoil in France and Japan, impacting commodity prices.
Meanwhile, oil prices dipped 0.67 percent to $62.13 per barrel after Trump announced advancements in ceasefire negotiations and inventories surpassed expectations, thereby reducing geopolitical risk premiums, according to experts.
Point of View
Our goal remains steadfast in providing accurate and insightful coverage of economic trends. The recent fluctuations in gold and silver prices reflect not just market dynamics but also broader geopolitical uncertainties. We emphasize the importance of informed decision-making for investors navigating these turbulent waters.
NationPress
09/10/2025
Frequently Asked Questions
What caused the drop in gold and silver prices on MCX?
The decline in gold and silver prices on the MCX is primarily due to investors engaging in profit booking after both metals reached record highs in the previous session.
What are the future price predictions for gold and silver?
Experts predict gold could surpass Rs 1,25,000 per 10 grams by the end of 2025, while silver may test Rs 1,55,000–Rs 1,60,000 per kg.
What factors are driving gold prices this year?
Gold prices have surged due to global political uncertainties, expectations of interest rate cuts by the US Federal Reserve, and strong inflows into gold ETFs.
