Gold and Silver Prices Slide Sharply as Strong Dollar Pressures Bullion Amid US-China Trade Optimism

Mumbai, 24 October 2025: Gold and silver prices fell sharply in Friday’s futures trade as traders booked profits following recent gains, while a stronger US dollar and renewed optimism over US-China trade negotiations weighed on safe-haven demand.

Gold Futures on MCX Drop ₹1,109 to ₹1,22,995 as Traders Lock in Profits

On the Multi Commodity Exchange (MCX), gold futures for December delivery declined ₹1,109 or 0.89% to ₹1,22,995 per 10 grams with a turnover of 12,958 lots. The February 2026 contract fell ₹1,075 or 0.86% to ₹1,24,200 per 10 grams in 2,239 lots.

The retreat followed a steady rally in previous sessions, as market participants booked profits. Adding to the pressure, the US dollar index strengthened 0.11% to 99.05, reducing bullion’s appeal as a safe-haven asset. The combined effect of profit-taking and a firmer dollar triggered the downward momentum in gold prices.

Silver Futures Mirror Gold, Dropping ₹2,683 to ₹1,45,829 on Profit-Taking

Silver futures saw a significant correction alongside gold. The December contract plunged ₹2,683 or 1.81% to ₹1,45,829 per kg in 21,080 lots, while the March 2026 contract slipped ₹2,206 or 1.47% to ₹1,47,878 per kg across 5,250 lots.

The fall was primarily driven by profit-booking, combined with firmness in the US dollar and Treasury yields, which limited investor interest in precious metals. The decline underlined the sensitivity of silver prices to both domestic trading activity and global macroeconomic signals.

Global Gold and Silver Markets See Correction After Recent Rally

Internationally, Comex gold futures for December delivery dropped USD 20.61 or 0.50% to USD 4,124.99 per ounce following a near 2% rise in the previous session. The correction is expected to end gold’s nine-week winning streak, as traders reduced positions after repeated record highs.

Similarly, Comex silver futures for December delivery fell 1.06% to USD 48.19 per ounce, reflecting profit-booking across the broader metals market and tracking the downward movement in gold.

US CPI Data and Fed Signals Expected to Influence Short-Term Precious Metal Trajectory

Market participants are awaiting the upcoming US Consumer Price Inflation (CPI) report and signals from the Federal Reserve, which are likely to shape near-term gold and silver price trends. Meanwhile, geopolitical developments, including US-China trade negotiations and sanctions on Russia, remain key factors influencing market sentiment for bullion.

Gold and silver prices have paused their recent upward momentum, with profit-booking and a stronger US dollar driving the correction. Traders and market watchers should note that upcoming US inflation data and Federal Reserve guidance will be central to shaping short-term price movements, while global geopolitical developments continue to create uncertainty in the precious metals space.

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