Gold Prices Today, Oct 22: Biggest One-Day Drop Since 2020 Recorded

After touching record highs earlier this month, gold and silver prices have begun to retreat as investors lock in profits ahead of crucial US inflation data expected later this week. The upcoming figures are likely to shed light on the Federal Reserve’s future interest rate decisions, a key factor influencing global precious metal markets.

Market Overview

According to MCX data on Wednesday morning, December gold futures were trading at Rs 1,28,000 per 10 grams, down by Rs 271 or 0.21% from the previous close. Silver futures also slipped, declining by Rs 327 or 0.22% to Rs 1,50,000 per kilogram.

This marks a notable pullback following a sharp rally that pushed gold to an all-time high of $4,381.21 per ounce on Monday. Since that peak, gold prices have plunged more than 5%, registering the biggest single-day fall since August 2020.

Gold Prices Across Major Indian Cities

In major metros, Chennai reported the highest price for 22-karat gold at Rs 11,700 per gram, followed by Delhi at Rs 11,675. Key cities including Mumbai, Bengaluru, Kolkata, Pune, and Hyderabad maintained a consistent rate of Rs 11,660 per gram, while Ahmedabad stood slightly higher at Rs 11,665.

For 24-karat gold, Chennai led with Rs 12,764 per gram, followed by Delhi at Rs 12,735 and Ahmedabad at Rs 12,725. Meanwhile, Mumbai, Kolkata, Bengaluru, Pune, and Hyderabad reported a uniform rate of Rs 12,720 per gram.

What’s Driving the Price Movement?

Gold has surged nearly 56% this year, fueled by strong central bank purchases, geopolitical tensions, and expectations of interest rate cuts from major economies. However, the recent correction reflects shifting investor attention toward upcoming inflation data and monetary policy cues.

Adding to the sentiment, US President Donald Trump recently expressed optimism about achieving a fair trade agreement with China following a planned summit with President Xi Jinping in South Korea. The remarks helped ease trade worries, slightly reducing gold’s safe-haven appeal.

Outlook: Temporary Dip or Trend Reversal?

With the festive season now over and global factors taking center stage, analysts suggest gold prices may continue to face near-term pressure. Nevertheless, underlying fundamentals — including persistent global uncertainty, inflation risks, and central bank buying — could keep the long-term outlook for gold bullish.