Gold and silver prices extended their downward trend on Thursday after one of the steepest drops seen in years earlier this week. The correction follows months of rallying prices that had pushed both metals to record highs, leading investors to book profits amid global market uncertainty.
Gold Prices Edge Lower
Gold prices slipped slightly in early trade. Spot gold fell 0.3% to $4,082.95 per ounce, while U.S. gold futures for December delivery rose 0.8% to $4,097.40 per ounce.
The U.S. dollar index inched up by 0.1% against major currencies, making gold slightly costlier for foreign investors. A stronger dollar typically weighs on demand for precious metals.
Investors are now watching for the U.S. Consumer Price Index (CPI) data for September, due Friday, which was delayed because of a government shutdown. The data is expected to show core inflation steady at 3.1%.
Lower inflation could influence the Federal Reserve’s next move, with markets anticipating a 25-basis-point rate cut next week.
Gold usually benefits from lower interest rates, as they reduce the opportunity cost of holding non-yielding assets like bullion. However, short-term volatility and profit booking can cause temporary price corrections.
Trade and Geopolitical Developments Affecting Prices
Global sentiment has also been shaped by comments from U.S. President Donald Trump, who said he expects to meet Chinese President Xi Jinping next week in South Korea to discuss trade and energy issues, including China’s oil purchases from Russia.
Russia has confirmed preparations for a possible summit between President Vladimir Putin and Trump, which investors are closely monitoring for potential impacts on global trade and commodity markets.
Geopolitical uncertainty has been one of the main drivers behind gold’s remarkable rise in 2025, as investors sought safe-haven assets amid global tensions and slowing growth.
Gold’s Performance in 2025
Despite the recent correction, gold remains one of the best-performing assets of the year, gaining nearly 56% since January and hitting an all-time high of $4,381.21 per ounce earlier this week.
The rally has been driven by economic uncertainty, expectations of interest rate cuts, and strong central bank purchases worldwide.
However, investors have recently begun locking in profits. Holdings in the SPDR Gold Trust, the world’s largest gold-backed ETF, fell 0.59% to 1,052.37 metric tons on Wednesday from 1,058.66 tons the previous day — indicating mild institutional selling.
Silver, Platinum, and Palladium Also Decline
The weakness in gold has spilled over to other precious metals.
-
Silver slipped 0.4% to $48.31 per ounce,
-
Platinum fell 1.4% to $1,598.65 per ounce, and
-
Palladium dropped 1.4% to $1,438.47 per ounce.
Analysts note that silver’s decline has been sharper because it is used in both industrial applications and investment portfolios. Slowing demand and profit-taking after record highs have pressured prices further.
Outlook for India
In India, gold and silver prices are expected to stay sensitive to global cues, rupee fluctuations, and domestic demand during the post-festive season.
While experts maintain a positive long-term outlook for precious metals, they advise investors to stay cautious in the short term, as prices may remain volatile before stabilizing.
