Precious metals markets experienced significant declines this week amid renewed Middle East tensions that have fueled inflation concerns. According to reports from NDTV Profit, gold prices fell by nearly ₹1,700, slipping below the ₹1,45,000 mark, with 24K gold down 1.19% to ₹1,44,340 per 10 grams. Silver saw an even steeper fall, dropping below the critical ₹2 lakh per kg mark. The decline was attributed to US interest rate expectations, as markets anticipate the Federal Reserve may hold rates steady at its October 27-28 meeting but potentially increase them during the December review. Spot gold fell 0.6% to $3,998.35 an ounce, touching session low of $3,975.23, with US gold futures for December delivery settling 1.3% lower at $4,007.90 per ounce. Over the week, MCX gold futures fell around 3.50%, with heavy selling pulling prices down from their previous highs.
Indian mutual fund houses have halted fresh subscriptions into gold and silver exchange traded funds as demand is expected to surge ahead of Dhanteras. As reported by NDTV Profit, many Indian mutual fund companies have stopped taking new money into their Gold ETF Fund-of-Funds (FoFs) since October 16. However, gold ETFs themselves, bought on the stock exchange, are still open, meaning existing SIPs in gold ETF FoFs won't be affected, but new registrations and inflows are temporarily halted. Investors can still directly buy gold ETFs on the exchange if they wish to invest in gold now.
Gold prices across major Indian cities on October 25, 2026, showed uniform decline with 24K gold ranging from ₹1,42,000-₹1,42,660 per 10 grams across Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, and Ahmedabad. 22K gold prices were ₹1,30,167-₹1,30,772 per 10 grams, while 18K gold rates were ₹1,06,500-₹1,06,995 per 10 grams. Silver 999 Fine prices remained uniform at ₹1,95,890-₹1,96,800 per kg across all cities. The uniform pricing reflects the broader market decline driven by global factors including higher energy prices due to Middle East war and inflation concerns.
Despite the ETF suspension, several gold investment options remain accessible to investors. According to NDTV Profit, physical gold bars or coins attract 3% GST, while jewellery also involves making charges and GST that are generally not recovered when reselling gold. The government has also stopped issuing new tranches of Sovereign Gold Bonds (SGBs), so investors cannot subscribe to fresh bonds from RBI, banks or brokers, though existing SGBs can be purchased from other investors in the secondary market. Investors should note that gold prices are not guaranteed, with historical returns averaging around 10% annually, but performance can be affected by broader economic conditions.
