Gold Prices in India Slip Rs 1,000 From Record High; Will Rates Rise Again Before Christmas?

Gold prices in India have fallen by approximately Rs 1,000 from their record high, primarily due to a strengthening Indian rupee. While domestic prices on the MCX have eased, global gold prices remain stable.

Gold prices in India have eased from record highs, leaving investors wondering whether the dip is just a short pause or the start of a deeper correction ahead of Christmas.

On the Multi Commodity Exchange (MCX), gold prices have slipped by nearly Rs 1,000 over the past three trading sessions. After touching an all-time high of Rs 1,35,199 per 10 grams, MCX gold settled around Rs 1,34,206 per 10 grams, pressured by a strengthening Indian rupee.

Stronger Rupee Puts Pressure on Gold

Market experts say the primary reason behind the recent correction is the appreciation of the Indian rupee against the US dollar.

Jateen Trivedi, VP – Research (Commodity & Currency) at LKP Securities, explained that global gold prices remain stable, but domestic factors have weighed on Indian markets. "Gold is trading in a narrow range near $4,330 on COMEX, while MCX gold slipped nearly 0.45% as rupee strength capped further upside," he said.

The mild recovery seen toward the end of Friday’s session has raised questions about whether buyers are returning or if it was just short-covering ahead of the weekend.

Why Gold and Silver Prices Are Cooling

According to Anuj Gupta, Director at Ya Wealth, the recent softness in gold and silver is largely driven by domestic currency movements rather than a change in the broader trend.

“The Indian rupee has recovered sharply after hitting a record low of 91.07 against the US dollar and closed near 89.59 after three straight sessions of gains,” Gupta said.

He added that the Bank of Japan's decision to hike interest rates has also weakened the dollar, triggering profit-booking in gold and silver after their strong rally. Despite this, Gupta believes the larger picture remains positive. "Any sharp dip should be seen as a buying opportunity as long as MCX gold stays above Rs 1,32,000 and MCX silver holds above Rs 2,03,000 per kg," he noted.

Global Gold Prices Hold Firm

On the global front, gold prices continue to show resilience. Ponmudi R, CEO of Enrich Money, said COMEX gold is consolidating near $4,368 per ounce, comfortably above key support levels.

"The broader breakout structure remains intact, and the medium-term trend is firmly bullish," he said. Ponmudi added that a sustained move above $4,400 could push prices toward $4,500, supported by geopolitical uncertainty, central bank buying, and safe-haven demand.

MCX Gold: Key Levels Investors Are Watching

In India, MCX gold has been trading within a narrow range for the past week, suggesting consolidation rather than a trend reversal.

According to Ponmudi, support for MCX gold lies between Rs 1,33,000 and Rs 1,31,500. "A decisive breakout above the Rs 1,34,500–Rs 1,35,000 zone could open the way for a rally toward Rs 1,37,000–Rs 1,40,000," he said, adding that rupee movements will remain a key factor.

Silver Prices Take a Breather After Record Rally

Silver prices have also cooled slightly after hitting lifetime highs. On COMEX, silver eased to around $67.4 per ounce following a sharp rally.

"Despite the pullback, the broader uptrend remains intact, supported by tight supply and strong industrial demand," Ponmudi said. He sees near-term support in the $64.7–$62.0 range, with upside potential toward $70–$75 if momentum picks up again.

MCX Silver: Bullish Trend Still Intact

On the MCX, silver continues to trade near record levels above Rs 2,08,000 per kg. While short-term consolidation is visible, analysts say the long-term structure remains positive.

"The Rs 2,05,000–Rs 2,00,000 zone is a crucial support area. As long as prices stay above Rs 2,00,000, the bullish trend remains intact," Ponmudi said. A breakout above Rs 2,10,000–Rs 2,15,000 could trigger fresh highs.