Gold Price Today, October 22, 2025: MCX Gold Crashes 6% to ₹1,20,600 per 10 Grams What’s Behind the Sudden Fall?
New Delhi, October 22, 2025:
Gold prices took a sharp tumble in Wednesday’s evening session, extending the recent correction in the bullion market. On the Multi Commodity Exchange (MCX), gold December futures opened at ₹1,24,423 per 10 grams and slipped dramatically to ₹1,20,575, marking a 6% plunge — the steepest single-day drop in nearly five years.
This sudden crash pushed prices to their lowest level since early October, erasing nearly ₹12,000 per 10 grams from last week’s high of ₹1,32,294.
Meanwhile, spot gold also faced heavy selling pressure, falling over 3% to below $4,007 per ounce, registering a cumulative two-day decline of around 8%. Tuesday’s session had already seen a massive 5% fall — the sharpest since August 2020.
Why Did Gold Prices Plunge So Sharply?
1. Profit Booking After a Massive Rally
After soaring over 70% year-to-date, gold prices were long overdue for a correction. Analysts say many traders booked profits following the sustained rally that had driven the metal to record highs last week.
2. Renewed Global Trade Optimism
A wave of positive trade sentiment appears to have shifted investor focus away from safe-haven assets like gold.
US President Donald Trump stated he expects to finalize a “fair” trade agreement with Chinese President Xi Jinping during their upcoming meeting in South Korea. This easing of tensions between the world’s two largest economies has boosted risk appetite across global markets.
Adding to the optimism, reports indicate that New Delhi and Washington are close to finalizing a long-pending trade pact that could cut US tariffs on Indian imports from nearly 50% to 15–16%, further supporting risk assets and pressuring gold.
3. Diwali Holiday & Thin Trading Volumes
Wednesday morning’s trading session was closed on account of Balipratipada (Diwali). When markets reopened in the evening, thin volumes and light liquidity amplified the volatility — triggering an accelerated sell-off in gold futures.
MCX Gold Performance Snapshot
| Session | Opening Price | Lowest Price | Change |
|---|---|---|---|
| Oct 22, 2025 | ₹1,24,423 / 10 gm | ₹1,20,575 / 10 gm | ▼ 6% |
| Last Week High | — | ₹1,32,294 / 10 gm | — |
Even after the steep correction, gold remains up nearly 60% in 2025, outperforming other asset classes like equities and real estate.
Global Context: Risk Appetite Returns
With easing geopolitical stress and signs of potential Federal Reserve policy easing, global investors have been shifting focus toward equities and risk-based assets. The anticipated Trump–Putin summit, which was reportedly delayed after Moscow refused a Ukraine ceasefire proposal, continues to add uncertainty to broader markets — though gold’s immediate reaction remains bearish.
Expert View: Correction or Opportunity?
Market analysts suggest that this pullback, while sharp, could present a buying opportunity for long-term investors. The underlying fundamentals — inflationary pressures, geopolitical risks, and potential rate cuts — remain supportive of gold in the medium to long term.
“We are witnessing a healthy correction after an unsustainable rally,” said one senior commodities strategist. “If prices stabilize above ₹1,20,000, this could turn into a consolidation phase before the next leg up.”
Investor Note
While the price dip may seem attractive, experts advise caution for short-term traders due to heightened volatility. Long-term investors, however, may consider gradual accumulation rather than bulk buying.
Final Word
Today’s sell-off in gold marks one of the most dramatic corrections of 2025, driven by a mix of profit booking, global optimism, and thin post-holiday trading.
Despite the fall, bullion remains one of the best-performing assets this year — a reminder that in times of uncertainty, gold continues to shine, even through temporary dips.
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