Gold Prices Crash ₹3,200 To ₹1.42 Lakh, Silver Plunges ₹4,200 Amid Fed Rate Fears

New Delhi: Gold and silver prices continued their downward trend in the national capital on Saturday, October 31, as rising crude oil prices, inflation concerns and uncertainty over US Federal Reserve interest rates weighed on precious metals.

Gold prices fell ₹3,200 to ₹1,42,000 per 10 grams, while silver declined ₹4,200 to ₹1,86,000 per kilogram, according to the All India Sarafa Association. Both prices include taxes.

Gold Hits December Levels

Gold of 99.9% purity dropped from Friday's closing price of ₹1,45,200 per 10 grams. The yellow metal is now trading near levels last recorded in December 2025.

Silver also weakened from ₹1,90,200 per kg in the previous session, approaching its December 2025 price levels.

October Losses Deepen

Gold has declined ₹7,300 from ₹1,49,300 per 10 grams recorded on September 30. Silver has witnessed a sharper correction, losing ₹46,000 from ₹2.32 lakh per kg during the same period.

The decline follows September's weakness, when gold dropped ₹11,600 and silver fell ₹13,500 from their respective August-end levels.

Global Markets Slide

International bullion markets also witnessed heavy selling pressure.

Spot gold plunged nearly 4%, or $145.84, to $3,875.55 per ounce on Friday. Silver declined 6%, or $3.04, to $49.12 per ounce.

Rahul Khetawat of 360 ONE Asset attributed the correction to rising energy prices, inflation concerns and hawkish commentary from the US Federal Reserve.

Manav Modi of Motilal Oswal Financial Services said higher oil prices had strengthened expectations of tighter monetary policy.

He added that selling in technology stocks and forced liquidation increased pressure on bullion, particularly silver.

Recovery Outlook

Rajeev Sharan, Head of Research at Brickwork Ratings, described the decline as a healthy correction rather than a reversal of the broader trend.

He noted that gold declined around 6% from its October high, while silver corrected approximately 17%.

According to Sharan, festive and wedding-related purchases in India, alongside continued central bank buying, could support gold prices.

Silver's industrial demand from solar panels and electronics may also provide support, although volatility could persist.

Analysts expect both metals to experience choppy trading before a gradual recovery.