India's Gold Prices Plunge as Festive Season Ends

As of October 22nd, 2025, gold prices in India have fallen sharply, continuing a 4-day losing streak and bringing relief to retail shoppers. With the Dhanteras and Diwali festivities now over, the focus has shifted to the upcoming wedding season, which is expected to encounter strong demand for gold and silver jewelry.

The steep decline in gold rates across India is primarily due to global trends. International spot gold prices tumbled on Tuesday, October 21st, 2025, as investors took profits following the previous day's record high of $4,382 per ounce. Spot gold plunged as much as 6.7% from the day's high, dropping below $4,080 amid a stronger dollar and easing safe-haven demand.

Despite the correction, gold remains up about 56% this year, supported by expectations of further Fed easing, strong central bank demand, and ongoing geopolitical uncertainty. The sharp drop in gold prices is likely to boost over-the-counter gold purchases across major Indian cities in the coming weeks.