Record Highs to Sudden Slips: What’s Really Behind Gold’s Price Fall

After doubling in price so far in 2025, the yellow asset fell hard in just a few days. As a gold investor, should you sell, hold or buy more?

Adepu Bindu

25 Oct 2025 — 3 min read

Record Highs to Sudden Slips: What’s Really Behind Gold’s Price Fall

Gold prices have dropped to a record low in the last few days. It has dropped about 14 times so far in 2025; however, it hasn’t had any effect on gold until now. The price of gold in India has doubled by 60%. But right now, in October, the rates have fallen significantly, making many wonder why. The real questions are: will it drop further and rise in the coming days? Should gold investors be worried about this? What's the current scenario with gold in the market? For all that, learn more.

International Market Situation

In global trading (Comex platform), gold for December delivery dropped by $20.61.
It's 0.50%, to $4,124.99 per ounce. The previous day saw a 2% rise.
Several analysts stated that gold has become too expensive to afford, having consistently hit record levels this year.
To profit from this rise, many began selling part of their gold holdings, leading to today's fall.
This fall, for several days, may end gold’s 9-week winning streak.

And on the other hand, the cost of silver fell too:

The Comex silver for December delivery fell by 1.06% to $48.19 per ounce.

Indian Market (MCX)

Gold futures in India also fell hard:

The December contract dropped by INR 1,109 or 0.89% to INR 1,22,995 per 10g.
The February 2026 contract fell by INR 1,075, or 0.86%, to INR 1,24,200 per 10g.

Silver fell to big losses:

The December contract dropped by INR 2,683 or 1.81% to INR 1,45,829/kg.
The March 2026 contract fell by INR 2,206, or 1.47%, to INR 1,47,878/kg.

Why Did the Gold Price Fall?

Stronger US Dollar

The dollar index rose 0.11% to 99.05. So, whenever the dollar strengthens, gold becomes more expensive, and demand falls.

Hope of US-China Trade Deal

Lower trade tensions mean less need for "safe assets" like gold.

Profit Booking

As the prices skyrocketed, traders sold parts of their gold to secure profits, and that's what is happening right now.

Large withdrawals from gold ETFs

Apparently, it's the biggest single-day drop in ETF holdings (by tonnage) in 5 months.

Correction after huge gains

Though the price is down now, it's already up by more than 50% this year. So, this fall is quite natural.

What’s Next? (Events to Watch)

The following events can affect the gold prices, and the experts are watching out:

US President Donald Trump and China’s Xi Jinping meeting.
Updates on the US government shutdown.
US-Russia tension and new sanctions on Russia.
US CPI inflation data, which could most likely affect the interest rates.
The Federal Reserve will likely cut rates two more times before the year ends, and this could support gold.

Final Words…

It’s indeed a good time to buy (because there’s a massive dip in the gold price) and okay to hold on to your reserves. However, it's a bad time to sell because you won’t make much profit at the moment.