After hitting record highs earlier this week, before bouncing back on Thursday (October 23). The rebound came as investors bought the dip ahead of key US economic data, even as a stronger dollar capped gains.
Gold December futures were up 0.89% at Rs 1,22,938 per 10 grams around 9:08 IST, while silver December contracts gained 0.93% to Rs 1,46,915 per kg.
By the evening session, gold had climbed to Rs 1,23,550 per 10 grams, and silver was priced at Rs 1,48,811 per kg, showing a steady rebound from Wednesday’s steep correction.
According to Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, “Gold prices recovered by Rs 1,800, closing at Rs 1,23,680 per 10 grams on MCX after witnessing a sharp sell-off earlier this week. The fall, driven by heavy profit booking from overbought levels and renewed optimism around US trade talks with India and China, marked one of the most significant corrections in months — nearly 5% on October 22.”
He added that uncertainty over changing US presidential policies triggered a modest rebound, as many investors saw an opportunity to re-enter at lower levels. “The upcoming US CPI data remains a crucial factor for near-term direction. Gold faces stiff resistance at Rs 1,25,000–Rs 1,25,500 and support between Rs 1,20,000–Rs 1,21,000,” he said.
Rahul Kalantri, VP Commodities at Mehta Equities Ltd, noted, “gold and silver prices stabilised around $4,050 and $48 per ounce after a sharp correction in the last two sessions as investors booked profits from Monday’s record highs.”
He said the pullback reflected a shift toward riskier assets amid optimism over US–India trade ties, which reduced the safe-haven demand for gold. “Seasonal demand in India also eased, putting pressure on physical markets,” Kalantri added.
due to expectations of further US rate cuts and ongoing global economic uncertainty. “Investors now await Friday’s US CPI report for new insights into the Fed’s policy outlook,” he said.
In dollar terms, gold has support at $4,020–$3,975 and resistance at $4,125–$4,170. Silver’s support lies at $47.85–$47.40, with resistance at $48.75–$49.30.
In Indian rupee terms, gold has support at Rs 1,21,070–Rs 1,20,580 and resistance at Rs 1,22,350–Rs 1,23,000. Silver is supported at Rs 1,44,350–Rs 1,43,450 and faces resistance near Rs 1,46,850–Rs 1,47,780.
Analysts believe gold could continue to trade in a narrow range ahead of Friday’s US CPI report, which is expected to provide clues on inflation and future rate decisions.
If inflation eases, gold may find fresh buying support. However, a stronger dollar or signs of policy tightening could limit gains.
For now, traders are likely to stay cautious, watching global cues closely — but with festive demand picking up in India, gold may remain supported in the short term.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)