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Gold Prices Plunge Rs 3,000 Amid US-China Trade Deal Optimism

Gold prices took a significant hit today, dropping over Rs 3,000 per 10 grams. The decline was driven by renewed optimism around US-China trade talks weakening safe-haven demand. Silver also saw sharp declines, forming a technical reversal pattern after its recent rally. Market attention now turns to the upcoming US Federal Reserve interest rate decision for further direction.

Key Points: Gold Silver Prices Fall Rs 3000 Weak Global Cues MCX

  • 24-carat gold fell to Rs 1,18,043 from Rs 1,21,077 in previous session
  • Silver formed textbook Head and Shoulders reversal pattern signaling trend exhaustion
  • MCX gold futures dropped 1.87% as spot market weakness continued
  • All eyes on US Fed interest rate decision Wednesday for next trend direction
2 min read

Gold prices slip over Rs 3,000 per 10 grams as global sentiment turns weak

Gold prices dropped Rs 3,034 to Rs 1.18 lakh per 10 grams as US-China trade optimism strengthened. Silver also fell sharply amid technical reversal patterns.

"Gold remains under pressure with key support at Rs 1,16,500-Rs 1,18,000, while resistance is seen near Rs 1,21,000-Rs 1,22,000 - Jateen Trivedi, LKP Securities"

Mumbai, Oct 28

The downward trend in gold prices continued on Tuesday, with rates falling close to Rs 1.18 lakh per 10 grams amid weak global cues and renewed optimism over trade talks between the US and China.

According to the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold dropped by Rs 3,034 to Rs 1,18,043, compared to Rs 1,21,077 in the previous session. Similarly, 22-carat gold slipped to Rs 1,08,127 per 10 grams from Rs 1,10,907, while 18-carat gold fell to Rs 88,532 from Rs 90,809.

Silver prices also declined sharply, falling by Rs 3,135 to Rs 1,41,896 per kg, against Rs 1,45,031 earlier. IBJA releases gold and silver prices twice a day -- at 12 noon and 5 p.m.

"After a spectacular rally from Rs 110,000 to Rs 170,000 per kg, Silver has formed a textbook Head and Shoulders pattern, a well-known reversal formation that typically signals exhaustion after a sharp uptrend. Prices have already broken below the neckline, with current levels near Rs 1,40,000 coinciding almost perfectly with the 50 per cent Fibonacci retracement of the prior rally," said SAMCO Securities.

Futures on the Multi-Commodity Exchange (MCX) mirrored the weakness in the spot market. The December 5, 2025, gold contract fell 1.87 per cent to Rs 1,18,700, while the silver contract for the same expiry slipped 0.74 per cent to Rs 1,42,301.

"Gold traded weak by another Rs 2,500 at Rs 1,18,450 per 10 grams as sentiment turned negative following renewed optimism around a possible US-China trade deal. The focus now shifts to the US Fed's interest rate decision on Wednesday night, which will guide the next leg of the trend. Gold remains under pressure with key support at Rs 1,16,500-Rs 1,18,000, while resistance is seen near Rs 1,21,000-Rs 1,22,000," Jateen Trivedi of LKP Securities.

In the international market, gold prices were down 1.98 per cent at $3,939 per ounce on Comex, while silver traded 0.52 per cent lower at $46.53 per ounce.

- IANS

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Reader Comments

R
Rohit P
As someone who invests in gold ETFs, this correction was much needed. The rally had become too overheated. Good opportunity to accumulate more units at lower levels.
A
Aditya G
₹3,000 drop in one day is significant! Shows how volatile gold prices can be. My mother bought gold last month at peak prices, feeling bad for her 😔
S
Sarah B
While the price drop is welcome for buyers, I wish the media would focus more on educating people about digital gold and gold bonds rather than just physical gold prices. There are better investment options available.
M
Meera T
Silver falling even more than gold! This is actually good news for our small jewellery business. Raw material costs were becoming unsustainable. Hope this brings some relief 🤞
V
Vikram M
US-China trade talks affecting our gold prices... shows how interconnected global markets are. Waiting for the Fed decision before making any investment moves.
K
Kavya N
Diwali is coming and gold prices dropping - perfect combination! 🎉 My family was planning to buy gold coins for Lakshmi Puja. This timing couldn't be better.

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