Business Desk
03 October 2025, 11:46 AM IST
In a notable shift, gold and silver prices have experienced a decline after reaching record highs earlier this week. Traders are now opting for profit-booking, driven by a backdrop of global economic uncertainty, particularly concerning the ongoing US government shutdown and the Federal Reserve’s monetary policy.
Recent Price Movements
Gold Prices
On the Multi Commodity Exchange (MCX), gold futures for December delivery fell by ₹643, or 0.55%, settling at ₹1,16,945 per 10 grams. The February 2026 contract also saw a decrease, dropping ₹646, or 0.54%, to ₹1,18,213 per 10 grams. Both contracts had previously set new peaks, with the December contract reaching ₹1,18,444 and the February contract hitting ₹1,19,674.
Contract
Current Price (₹)
Change (₹)
Previous High (₹)
December 2025
1,16,945
-643 (-0.55%)
1,18,444
February 2026
1,18,213
-646 (-0.54%)
1,19,674
Silver Prices
Silver also corrected after its recent highs. The December 2025 contract slumped by ₹2,170, or 1.5%, to ₹1,42,550 per kilogram, while the March 2026 contract fell ₹1,996, or 1.36%, to ₹1,44,266 per kilogram. Earlier in the week, the December contract had reached ₹1,45,715, and the March contract hit ₹1,47,784.
Contract
Current Price (₹)
Change (₹)
Previous High (₹)
December 2025
1,42,550
-2,170 (-1.5%)
1,45,715
March 2026
1,44,266
-1,996 (-1.36%)
1,47,784
Market Analysis
Profit-Taking and Economic Factors
Darshan Desai, CEO of Aspect Bullion & Refinery, highlighted that gold remains in an “overbought” territory following a significant rally of nearly 50% this year. He noted that while there has been mild profit-taking, the uncertainty surrounding the US government shutdown and its potential impact on Federal Reserve policy may limit further downside pressure from a stronger dollar.
Investors are expected to re-enter the market at lower levels, with anticipated demand from Exchange Traded Funds (ETFs) and central banks.
Silver’s Performance
Manav Modi, an analyst at Motilal Oswal Financial Services, pointed out that silver’s decline is also a result of profit-taking after reaching all-time highs. The ongoing US government shutdown has delayed key economic data releases, adding further pressure on silver prices.
Global Market Context
Globally, gold futures traded at USD 3,867.15 per ounce, down from the record USD 3,923.30 seen in the previous session. In contrast, silver futures edged higher by nearly 1% to USD 46.79 per ounce, indicating some resilience in the silver market.
Future Expectations
Jigar Trivedi, Senior Analyst at Reliance Securities, mentioned that silver remains supported by expectations of further US rate cuts and the uncertainty stemming from the government shutdown. Currently, markets are pricing in two Federal Reserve rate cuts by December, which could influence commodity prices moving forward.
Conclusion
As traders navigate the complexities of the current economic landscape, the recent declines in gold and silver prices highlight the delicate balance between profit-taking and ongoing market uncertainties. Investors will be closely monitoring developments in the US government and Federal Reserve policies, as these factors will likely play a crucial role in shaping the future trajectory of precious metal prices.
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