Gold prices in India showed their first recovery this week on Saturday, October 24th, with 22-carat gold rates jumping ₹100 to ₹13,150 per 10 grams and 24-carat gold rates rising ₹100 to ₹14,302 per 10 grams, as reported by The Hindu BusinessLine. 18-carat gold rates also increased by ₹80 to ₹10,520 per 10 grams. Despite this brief recovery, gold rates in India have fallen sharply over the week, declining by nearly ₹5,400 per 100 grams of 24-carat gold. The domestic bullion market has been under pressure due to weak cues from the international gold market, with spot gold prices slipping below $4,000 per ounce before closing on Friday to a multi-month low. Spot gold has fallen approximately 4% so far this week, indicating sustained selling pressure. Festive and wedding season demand continues to provide support to the yellow metal, creating mixed market dynamics across different retail channels. Ponmudi R, CEO of Enrich Money, noted that gold and silver recorded substantial weekly declines, as rising crude oil prices intensified inflation concerns and strengthened expectations of higher-for-longer interest rates.
Despite the overall decline, festive demand rose amidst the celebration of Dhanteras and Diwali, creating mixed market dynamics across different retail channels. Physical gold prices have crashed by ₹55,600 in 100 grams this week, with 10 grams of gold plunging below the ₹142,500 mark on October 23, as reported by Goodreturns. 1 gram of gold is below ₹13,500 in 22-carat, below ₹14,700 in 24-carat and under ₹11,000 in 18-carat following the recent crash. Tanishq's 22-carat gold price stood at ₹13,110 per gram on October 23, up from ₹13,100 per gram during Dussehra celebrations, while 24-carat gold price reached ₹14,302 per gram. IBJA's 999 purity gold dropped to ₹14,163 per gram, with 995 purity and 916 purity gold prices at ₹14,106 and ₹12,973 per gram respectively. Malabar Gold rates are at ₹13,070 per gram for 22-carat gold, with 24-carat gold at ₹14,258 per gram. Latest retail rates show 24K gold at ₹1,43,020-₹1,43,020 per 10 grams across major cities, with silver 999 prices ranging from ₹2,04,030-₹2,10,360 per kg.
Crude oil prices have surged above $114 per barrel amid escalating geopolitical tensions and concerns over potential supply disruptions, as reported by NDTV Profit. Reports indicate that the US and Israeli militaries have developed plans for a short, intensive operation following next month's midterm elections, though President Trump previously played down concerns about the war saying it would end after the midterm elections. Brent crude rose 3.3% to $112.38 a barrel after touching its highest level in five months, with Goldman Sachs recently raising its Brent crude price forecast for December to $90 a barrel from $85 citing a risk premium of just over $20 a barrel. Amid rising supply shortages, Trump earlier this month waived sanctions and tariffs on Russia, but persistent tensions in the region are keeping prices elevated. Higher energy prices have reinforced expectations that the Fed will keep interest rates elevated for longer, increasing the opportunity cost of holding non-yielding gold, said Monte Safieddine, head of market research at Capital.com. Any further escalation in geopolitical tensions could push oil prices higher, reviving inflation concerns, lifting bond yields and delaying interest rate cuts. Rising energy prices have significantly boosted inflation concerns, with Brent crude trading at 110.12, up 1.19%, while WTI crude oil was at 98.12, higher by 1.00.
Digital gold is also emerging as an option for consumers looking to invest smaller amounts in the yellow metal during the festive season. According to the World Gold Council's October 2026 India gold market update, digital gold purchases rose 5% month-on-month to 1.7 tonnes in September, while the value of purchases increased 83% year-on-year to ₹25.9 billion. This trend reflects changing consumer preferences as financial planners say that for household budgets and long-term financial planning, a price correction can be an opportunity to review buying plans. The growth in digital gold adoption suggests that while physical gold prices may face pressure, alternative investment vehicles are gaining traction among Indian investors seeking precious metal exposure.
Looking ahead, commodity markets are likely to remain volatile as investors assess the Federal Reserve's October policy decision, upcoming US PCE inflation data, movements in Treasury yields and the dollar, and developments in the Middle East, according to Ponmudi R, CEO of Enrich Money. Gold and silver could remain under pressure if elevated energy prices reinforce inflation concerns and expectations of tighter monetary policy. However, physical demand and any moderation in bond yields could offer support following the recent correction. Gold trading below key support levels signals a bearish trend, with resistance near ₹1,45,300 and support around ₹1,43,000, suggesting potential further decline, according to Choice Broking. Ponmudi noted that gold's near-term trend remains weak after the sharp gap-down opening, with the ₹1,43,000-₹1,43,700 range as immediate resistance zone. The next resistance lies at ₹1,45,300-₹1,46,000, while on the downside, ₹1,40,000-₹1,41,000 is the crucial support band. A decisive break below this range could push prices towards the next support zone of ₹1,37,500-₹1,38,300. For Indian investors, gold's immediate support lies near ₹1,45,500 per 10 grams, with a sustained move above ₹1,46,500 indicating stabilisation.
