Precious Metals Face Short-Term Correction
Gold and silver prices are experiencing a temporary decline after a strong rally leading up to Diwali 2025. Investors are watching closely to see where the precious metals will move next. Experts say the pullback is short-term, and the long-term outlook remains bullish.
Why Gold Prices Corrected
Rajesh Rokde, chairman of the All India Gem and Jewellery Domestic Council, told ANI that the recent dip in gold prices was expected after a sharp rise over the past months.
“Gold prices jumped from around $3,300 per ounce to $4,400 per ounce in the last four months, a nearly $1,100 increase per ounce. In India, 24-karat gold rose from Rs 75,000 per 10 grams to Rs 1.3 lakh per 10 grams in a year. A small correction was natural.”
Rokde noted that global demand for gold remains strong. He said prices might dip another $50-100 per ounce, but a deeper fall is unlikely as central banks continue buying gold.
Factors Supporting Gold
According to Rokde, gold is backed by several key factors:
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Geopolitical tensions
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US tariffs and trade issues
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The global trend of de-dollarization
“Countries are moving away from the dollar, and gold is seen as a safe alternative. For example, China converts dollar payments into gold, increasing global demand,” he explained.
He also mentioned that post-Diwali profit booking by traders often leads to temporary price dips, but long-term potential for gold remains strong, with current rates around Rs 1.25–1.26 lakh per 10 grams.
Silver’s Strong Performance and Short-Term Pressure
Ajay Kedia, founder and director of Kedia Commodities, highlighted that silver has surged nearly 85% in India this year.
“When a commodity rises sharply, a 10–20% correction is normal. Silver may face some pressure but is unlikely to crash. After big rallies, prices usually consolidate before moving higher.”
Kedia noted silver has fallen about 12–12.5% in India since Friday, with larger declines globally. He added that silver may find support around Rs 1.40 lakh per kg, but there are no clear buying opportunities at current levels.
Short-Term Volatility for Gold
Gold prices fell from $4,300 to $4,100 per ounce in recent sessions. Kedia said short-term movements will depend on:
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Talks between Donald Trump and China
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Discussions between Russia and the US
“Gold is experiencing extreme volatility. Prices could dip to around Rs 1.25 lakh per 10 grams, so current levels may not be ideal for buying,” he explained.
Long-Term Outlook Remains Positive
Both experts agreed that while gold and silver may see short-term dips, strong fundamentals and global economic factors support further long-term gains. Investors are advised to stay cautious in the short term but keep an eye on the positive long-term trends.
