Overview: Precious Metals See Sharp Decline in India
Gold and silver prices crashed sharply across Indian markets on November 4, 2025, as global monetary cues and shifting investor sentiment triggered heavy selling in precious metals. The fall was led by silver, which dropped over ₹3,150 per kilogram, while gold slid nearly ₹487 per 10 grams on the Multi Commodity Exchange (MCX).
This marks the second consecutive day of losses, a worrying sign as India’s festive and wedding season — typically a period of soaring demand for gold and silver — gets underway.
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Gold and Silver Prices Today (November 4, 2025)
On the MCX (Multi Commodity Exchange):
- Gold (Dec futures): ₹1,20,928 per 10 grams ⬇ ₹487
- Silver (Dec futures): ₹1,48,343 per kg ⬇ ₹1,800
As per the Indian Bullion Jewellers Association (IBJA):
- 24-carat gold: ₹1,20,419 per 10 grams ⬇ ₹358
- Silver: ₹1,46,150 per kg ⬇ ₹3,150
In Delhi’s local retail market:
- Gold (24-carat): ₹1,23,500 per 10 grams ⬇ ₹1,200
- Silver: ₹1,51,500 per kg ⬇ ₹2,500
Overall, gold has now declined ₹10,857 from its October highs, while silver is down nearly ₹23,300 from recent record levels.
Why Gold and Silver Prices Are Falling
The current selloff in gold and silver is primarily linked to U.S. Federal Reserve’s hawkish policy stance and global currency movements.
🔹 1. Federal Reserve’s Policy Impact
Following Fed Chair Jerome Powell’s comments last week indicating a cautious stance on future rate cuts, global investors reduced their expectations for a December rate cut.
- Probability of another rate cut in December: Down to 65% (from 90% earlier)
- Result: Investors shifted funds towards the U.S. dollar and government bonds.
Higher interest rates reduce the appeal of non-yielding assets like gold and silver, leading to heavy liquidation in bullion markets.
“Gold hovered around $4,000 per ounce as the dollar strengthened to a three-month high. The Fed’s hawkish stance and easing U.S.-China trade tensions further dented bullion demand,” said Manav Modi, Analyst at Motilal Oswal Financial Services.
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🔹 2. China’s Policy Shift
Adding to the pressure, China announced the removal of tax rebates for some gold retailers starting November 1, 2025.
- VAT exemption reduced from 13% to 6%
- The move has reduced margins for Chinese retailers and dampened gold demand in the world’s largest bullion market.
Though Chinese demand was already moderate this year, the policy shift created a negative ripple effect across global markets, including India.
🔹 3. Strong U.S. Dollar and Bond Yields
The U.S. dollar index (DXY) surged to 99.95, its highest level in three months, making precious metals costlier for foreign investors.
Simultaneously, U.S. Treasury yields rose, attracting investors to bonds instead of non-yielding metals. This shift in investor preference contributed significantly to the selloff in gold and silver futures.
Global and Domestic Market Reaction
- Global gold futures traded around $3,998 per ounce, while silver fell to $41.90 per ounce, both marking steep weekly declines.
- In India, bullion traders reported low retail footfall despite wedding season buying trends.
- The Indian rupee’s weakness against the dollar also limited price recovery in local markets.
Analysts expect further short-term volatility in prices, depending on the Federal Reserve’s December policy meeting and upcoming U.S. inflation data.
Long-Term Outlook: Still Positive for 2025
Despite the recent crash, analysts maintain that the long-term outlook for gold and silver remains strong:
- Gold is still up over 50% year-to-date, thanks to geopolitical tensions and central bank purchases.
- Silver, supported by industrial demand from solar panel manufacturing and electronics, continues to trade above long-term averages.
According to experts, this correction could be a “healthy pullback” ahead of a fresh rally in early 2026.
“A dip toward ₹1,18,000 levels for gold could attract strong buying again. The structural uptrend for precious metals remains intact,” noted a bullion trader from Zaveri Bazaar, Mumbai.
Investment Tip for Retail Buyers
- Investors looking to buy physical gold or silver should wait for prices to stabilize near key support zones.
- For short-term traders, volatility may remain high due to Fed statements and global policy cues.
- Experts suggest staggered buying rather than lump-sum purchases at current levels.
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Conclusion
The recent crash in gold and silver prices across India reflects global monetary dynamics rather than local demand weakness.
With the U.S. Fed signaling higher-for-longer interest rates and China tightening gold retailer benefits, bullion prices have taken a temporary hit.
However, as inflation concerns persist and global uncertainties remain, both metals are expected to regain upward momentum in the coming months.
For Indian investors, this dip could be a golden opportunity — literally — to enter the market before prices rebound.
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