Key Points:
- Gold prices fall again: MCX gold dropped 2.51% on Oct. 27, extending its two-day decline.
- Trade optimism hits demand: Progress in U.S.-China talks reduced gold’s safe-haven appeal.
- Short-term dip, long-term strength: Analysts expect near-term pressure but note gold’s 1,200% rise over 20 years.
Gold price fall continued for a second consecutive session on Oct. 27, extending their decline after a nine-week rally. The drop came as renewed optimism over U.S.-China trade negotiations reduced demand for the safe-haven asset.
The December futures contract on the Multi-Commodity Exchange (MCX) closed at ₹120,330 per 10 grams, down 2.51% from the previous session. The contract opened lower at ₹122,500 and fell steadily through the day, marking its lowest level in two weeks.
Monday’s decline followed a 2.8% weekly drop last week, the sharpest since June 2025. The combined fall has wiped out nearly ₹7,000 from gold’s recent peak, which was driven by concerns over global economic slowdown and geopolitical tensions earlier this quarter.
Trade progress weakens gold’s appeal
Market analysts said easing tensions between Washington and Beijing have reduced the appeal of gold as a hedge against uncertainty. U.S. Treasury Secretary Scott Bessent said over the weekend that officials from both countries had reached a “substantial framework” for a trade deal aimed at avoiding new tariffs and delaying China’s planned export restrictions on rare earth materials.
U.S. President Donald Trump, speaking aboard Air Force One on Monday, said the two sides were close to an agreement that could be finalized during his meeting with Chinese President Xi Jinping later this week in Japan. “We’re going to come away with a deal that works for both sides,” Trump said, according to reports.
The positive signals from both governments have strengthened the U.S. dollar, making gold more expensive for overseas investors and further pressuring prices, leading to the ongoing gold price fall.
Broader commodity trends
Silver prices also declined on Oct. 27, with December futures on the MCX dropping 1.07% to ₹145,898 per kilogram. The fall in both metals reflects a broader shift toward risk assets, as investors expect trade progress to support global growth.
Data from the Indian Bullion Association showed 24-carat gold priced at ₹122,590 per 10 grams in early trade, while 22-carat gold stood at ₹112,374 per 10 grams. Year to date, however, gold remains up about 56%, underscoring its strong performance through much of 2025.
City-wise gold and silver prices
Retail rates for Oct. 27 showed consistent declines across major Indian cities:
- Mumbai: Gold ₹121,960/10 gm; silver ₹145,540/kg
- Delhi: Gold ₹121,790/10 gm; silver ₹145,330/kg
- Chennai: Gold ₹122,440/10 gm; silver ₹146,240/kg
- Bengaluru: Gold ₹122,180/10 gm; silver ₹145,930/kg
- Hyderabad: Gold ₹122,280/10 gm; silver ₹146,050/kg
- Kolkata: Gold ₹121,840/10 gm; silver ₹145,390/kg
- Ahmedabad: Gold ₹122,160/10 gm; silver ₹145,770/kg
- Pune: Gold ₹121,960/10 gm; silver ₹145,540/kg
Local jewellers said prices could remain under pressure in the short term as global markets await the outcome of the U.S.-China talks, , which will determine if the gold price fall continues.
Background and outlook
Over the past 20 years, gold prices in India have risen more than 1,200%, from ₹7,638 in 2005 to above ₹125,000 in 2025. Despite the current gold price fall, analysts say gold continues to serve as a reliable hedge during periods of volatility.
If the trade deal between the world’s two largest economies progresses smoothly, market watchers expect bullion prices to stay subdued in the near term. However, any setback in negotiations or signs of inflationary pressure could reignite demand for the metal and end the gold price fall.
For now, investors remain cautious as the global market shifts focus from risk aversion to growth optimism.
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