Gold and silver prices sharply rise after a period of decline on the MCX exchange

In recent days, there has been a significant drop in the prices of gold and silver. Gold fell by 30% from its record highs, and silver by approximately 60% from its highs. However, prices for both metals are now showing a sharp increase after hitting the bottom.

After forming a low point, the prices of gold and silver experienced a strong jump. On Wednesday, the gold futures on MCX rose by almost 3000 rupees, and the silver futures increased by more than 6000 rupees. Furthermore, the price has already risen by 10 thousand rupees compared to today's minimum. The price of silver on the December futures is 185719 rupees per kilogram, while gold is priced at 142423 rupees per 10 grams.

The recent price surge occurred due to a number of factors. Although gold and silver prices are still significantly below historical highs, they have become very affordable. Silver is cheaper than its peak by 2.35 lakh rupees, and gold has lost 52 thousand rupees. This low pricing occurred against the backdrop of falling global precious metal prices and a simultaneous rise in crude oil prices.

Vandana Bharti from SMC Global Securities believes that gold looks quite stable in the near term. She views the current consolidation as a potential base for further growth. Internationally, for gold on COMEX, it is important to remain above the critical level of $4000 per ounce. A significant breakthrough could raise prices to $4200, while $3900 acts as an important support. On MCX, Bharti forecasts gold movement towards 142000 rupees per 10 grams, with support at the level of 137000 rupees.

For those planning to purchase gold and silver during holidays such as Dhanteras and Diwali, as well as during the wedding season, there is positive news. The trend of decreasing precious metal prices continues. On the domestic market on October 23, 2026, the cost of both gold and silver was observed to fall.

Specifically, the price of 24-karat gold decreased by 0.61%, reaching 142,750 rubles per 10 grams. The price of silver fell by 1.93%, amounting to 196,510 rubles per kilogram. Pressure is also being observed in the international gold market.

Globally, gold has been at low levels for over two weeks. The main reason is growing concern about inflation linked to rising crude oil prices. This forces investors to closely monitor the upcoming statement from the US Federal Reserve regarding interest rates.

Since gold does not generate regular income, when interest rates and bond yields rise, alternative income-generating instruments become more attractive to investors. The next meetings of the US Federal Reserve, scheduled for October 27 and 28, may provide insight into the future direction of interest rates, which could potentially affect the dollar exchange rate, bond yields, and gold prices.

On the domestic futures market, prices for both metals also recorded a decline on Friday morning. At approximately 9:13 AM on the Multi Commodity Exchange (MCX), the futures price of gold dropped by 0.66%, reaching 142,680 rubles per 10 grams. The futures price of silver decreased by approximately 1.99%, reaching 196,390 rubles per kilogram. It is important to note that futures market prices may differ from retail prices in the country and in different cities. Furthermore, the final cost when purchasing jewelry may change due to labor markup, VAT, and other applicable fees.

24-karat gold is considered the purest sample, while 22-karat gold is more often used for making jewelry. Other metals are added to it to give the items greater durability. Silver with a purity of 999 contains 99.9% silver and is used for coins, bars, and other investment forms.

The future direction of precious metal prices will depend on several factors: US Federal Reserve meetings, crude oil prices, inflation concerns, and the dynamics of the dollar exchange rate. If signals point to a tight monetary policy, gold may remain under pressure. Conversely, if expectations of rate cuts increase, gold may receive support.

Despite today's price drop, this does not guarantee that the metal's value will rise again in the near future. Therefore, before purchasing, one must decide whether they are buying jewelry for personal use or gold as a long-term investment. If the goal is to buy jewelry, one should focus on the price of 22-karat gold, as this purity is typically used to make items. In the final receipt, the labor markup and corresponding taxes will be included.

Investors should not make decisions based solely on daily price declines. They must consider the investment horizon, the share of gold in the portfolio, and the risks associated with future price fluctuations. A price drop itself does not prove that gold has become cheap or that the right time to buy has arrived. To understand the further movement of gold, one should monitor MCX prices, global prices, and the ruble exchange rate against the US dollar.

On the Multi Commodity Exchange (MCX), precious metal prices experienced a sharp decline on Thursday following the start of futures trading. Prices for both metals plummeted: the cost of silver fell by more than 5,000 rupees, reaching a level of 2.03 lakh rupees per kilogram, while the futures gold rate dropped to 1.44 lakh rupees per 10 grams.

The drop in silver prices accelerated on Thursday, although a decrease had been observed over the past four days. On MCX, the price of silver with a December 4 expiry fell to 2,03,798 rupees, compared to closing at 2,09,168 rupees on the previous trading day. Thus, silver lost 5,370 rupees per kilogram in a single move.

Comparing current prices to the historical high, silver on MCX had previously exceeded the 4 lakh rupee mark for the first time at the end of January, peaking at 4,20,048 rupees. Based on current prices, silver is now available 2,16,250 rupees cheaper than its maximum value.

Not only silver, but also futures prices for gold sharply decreased. On MCX, 24-carat gold with a December 4 expiry fell to 1,44,311 rupees from an opening price on Thursday. Previously, on Wednesday, it traded at 1,46,079 rupees per 10 grams, representing a decrease of 1,768 rupees per 10 grams.

The decline in gold prices has continued since the beginning of this week. On Friday, the last trading day of last week, the futures price of gold was 1,47,918 rupees per 10 grams. As of the writing of this news on Thursday, the gold rate had fallen by 3,607 rupees. Furthermore, compared to September 30, when 10 grams of gold cost 1,49,036 rupees, it is now cheaper by 4,725 rupees per 10 grams.