BUSINESS DESK: Gold Crash: Prices Plunge $245 in a Day!
Sharp Drop in Global Prices
Gold prices took a nosedive on October 21, 2025, marking the steepest single-day decline since 2013. An ounce of 24-carat gold fell over 5 percent to around $4,097, shedding about $245 from recent peaks. Silver followed suit, dipping to $48.39 per ounce in a 7 percent slide that echoed market jitters.
Key Drivers Behind the Correction
Investors cashed in profits after gold and silver hit all-time highs earlier this year, fueling the sell-off. A stronger US dollar made these metals pricier for overseas buyers, adding pressure. Analysts also point to reduced global tensions, which lessened the appeal of safe-haven assets like precious metals.
Historical Context of the Fall
This kind of drop hasn’t been seen in gold for over a decade, reminding traders of 2013’s volatility. Silver’s decline ranks among its worst in recent years too. Despite the setback, both metals remain up significantly year-to-date, buoyed by ongoing economic uncertainties.
Impact on Indian Markets
With India’s bullion markets shut on Tuesday due to a holiday, price adjustments will show up on Wednesday. Even with a 9 percent hike in import duties and taxes, gold’s local price could settle at Rs 12,636 per gram, or Rs 1,26,360 for 10 grams, based on the rupee at Rs 88. Silver might trade around Rs 1,49,000 per kilo.
Comparison to Recent Levels
Just a day earlier, Hyderabad’s market had 10 grams of gold at Rs 1,31,920 and silver at Rs 1,65,000 per kilo. The international correction could ease some pressure on buyers here. Traders expect volatility as global trends filter through.
Broader Economic Signals
A robust dollar often signals shifts in investor sentiment toward riskier assets. Easing international conflicts might further cool demand for gold as a hedge. Still, central bank buying and inflation worries could support a rebound soon.
What Traders Are Watching
Market watchers anticipate how Wednesday’s opening in India reflects these changes. Potential US policy moves could influence the dollar’s strength. Long-term bulls see this dip as a chance to enter, while others warn of more corrections ahead.
- Profit-taking remains a top reason for such swift drops.
- India’s duty increases add layers to local pricing dynamics.
- Global tensions play a pivotal role in metal valuations.
Outlook for Recovery
Experts suggest the uptrend isn’t broken, with gold up over 50 percent in 2025 so far. Silver’s industrial uses might aid its bounce back. Investors should monitor currency fluctuations and geopolitical news for clues on the next move.