Gold prices in India slide 2.5% weekly as oil-driven inflation worries loom ahead of Diwali
India's MCX gold futures fell 2.5% over the week, with a 7.9% drop for October, as higher crude oil prices and inflation concerns weigh on the market.
Gold prices in India continued to decline during the week, with MCX futures for December delivery down 2.5% and a 7.9% fall for the month of October. The bullion slipped to ₹1,38,419 per 10 grams, its lowest level since early October 2025. The drop follows a sharp rise in crude oil prices that has heightened inflation expectations and reinforced forecasts that U.S. interest rates will stay elevated.
Analysts note that the correction may provide a buying window for consumers planning purchases during the Diwali and Dhanteras festivals. Siddharth Maurya, founder and managing director of Vibhavangal Anukulakara Pvt. Ltd, said, "> Strong demand for the festive season and weddings could support domestic gold prices, but the market is likely to remain volatile."
Internationally, gold posted its worst October decline since 2008, with prices falling as much as 3.6% to $3,876.39 per ounce, according to Bloomberg. Bart Melek, global head of commodity strategy at TD Securities, explained, "> Higher oil prices are creating a risk-off environment, prompting a Treasury rally and reducing liquidity for equities, which is pulling gold down as well."
Investors are advised to consider staggered purchases rather than waiting for a single price point, given the ongoing uncertainty in currency, bond yields and interest-rate expectations.