Why is Gold Crashing? Biggest Fall Since May 2025- Will Chhath Puja be the right time to buy Gold? Today’s Gold Rates in Major Cities

Gold Price India: Gold price experienced its biggest drop in over 12 years, falling as much as 6.3% intraday to near $4,000 an ounce in October 2025, after a remarkable rally that saw gold prices rise around 55-57% this year. As per Bloomberg, gold slipped to around $4,112 per ounce on Friday, October 24, which means it is likely to end the week with a slide of around 3 per cent in value. The publication also reported that this would be the biggest decline in gold prices since May. Experts say that rising interest rates, strengthening of the US dollar, and changes in demand-supply patterns are key reasons behind this decline.

Key Reasons for the Gold Price Drop Globally

• Stronger U.S. Dollar: The dollar index (DXY) rose 0.33% to 98.91, making gold pricier for non-U.S. buyers and reducing its appeal as a safe-haven asset.
• Optimism over U.S.: China trade talks ahead of November 1 tariff deadlines lowered safe-haven demand, shifting capital to equities.
• The trade war between the US and China may soon be resolved, and the Federal Reserve is likely to cut interest rates by 25 basis points, with the CPI for September at 3.1 per cent. Because of this, demand for gold is falling, which is causing prices to drop.

Gold’s rally

Gold prices started rising in August. This month, they reached a record high of $4,381.52 per ounce. However, on October 21, prices dropped sharply. The fall happened because a large amount of money was taken out of gold-backed exchange-traded funds. Analysts warn that gold’s rally had become technically overstretched, triggering a wave of profit-taking.

The fall in gold prices is seen as a temporary correction, not a long-term change. Experts expect gold to reach $4,391 by late November, $4,000–$4,500 by the end of 2025, and over $5,000 in 2026. Demand during festivals may support prices, as India’s gold imports rose 35% in the third quarter of 2025 despite high rates.

Also Read: Gold rate today: Prices Remain Low! Will They Dip Further Before Chhath Puja? Know the Current Rate of the Yellow Metal

Is Chhath the right time to Buy Gold?

As Chhath Puja approaches, many people consider buying gold as part of the festival tradition. However, with current rates falling, experts advise caution. Some suggest waiting for the market to stabilise, while others see this as a potential opportunity to buy at lower prices.

Indian Major Cities Gold Rates Today (1 gram)