Gold Prices Fall ₹13,000 from Peak Ahead of US Fed Decision; Global Risk Sentiment Improves

Mumbai | October 28

Gold prices continued to decline on Tuesday, retreating sharply from record highs as investors turned to riskier assets ahead of the US Federal Reserve’s policy outcome. Optimism over progress in US–China trade discussions and easing geopolitical concerns weighed on demand for safe-haven bullion.

On the Multi Commodity Exchange (MCX), gold futures fell below ₹1,19,000 per 10 grams, marking a correction of more than ₹13,000 from record levels touched earlier this month. Despite the pullback, gold remains one of 2025’s best-performing assets, still up nearly 50% year to date.

MCX and Global Market Performance

Gold December futures on MCX opened 0.7% lower at ₹1,20,106 per 10 grams compared to the previous close of ₹1,20,957 and slipped further to ₹1,18,570, down 1.97% or ₹2,387 by 1:50 PM. Silver futures followed suit, trading 1.74% lower at ₹1,40,879 per kilogram after opening at ₹1,42,366.

Trading at MCX resumed after a four-hour delay due to a technical glitch, with normal operations beginning at 1:25 PM from the exchange’s disaster recovery site.

In global markets, spot gold fell 1% to $3,941.65 per ounce, while US gold futures for December delivery dropped 1.5% to $3,957.50 per ounce, extending a three-week low. The fall came after nearly ten months of gains, driven by central bank buying, inflation concerns, and safe-haven inflows.

Focus on US Federal Reserve Policy Outcome

Investors are closely watching the Federal Reserve’s policy decision, expected on Wednesday, for cues on future monetary direction. Markets anticipate a 25-basis-point rate cut, following weak inflation data and signs of moderation in US growth.

Lower interest rates generally support gold by reducing the opportunity cost of holding non-yielding assets. However, any hawkish commentary from the Fed could weigh on sentiment in the near term.

Meanwhile, profit-taking and improved global equity performance have also contributed to the recent pullback in gold prices.

Gold and Silver Price Summary (as of October 28, 2025)

Bottom Line

Gold’s ₹13,000 slide from its record high reflects a shift in market sentiment ahead of key global central bank decisions. While short-term volatility may persist, bullion remains supported by macroeconomic uncertainties, continued central bank demand, and fiscal imbalances across major economies.