Introduction
After a dazzling Diwali rally, gold prices in India cooled down on 22 October 2025, mirroring weakness in international bullion markets. The fall came as traders booked profits following the festive demand surge and as the U.S. dollar strengthened against major currencies.
According to Dhwani Shah Patel, Founder of Finversify, the current pullback is “a short-term correction, not a reversal of trend.” She believes gold remains well-supported by global macro factors such as inflation and central-bank buying.
City-Wise Gold Rates in India (22 October 2025)
| City | 22-Carat Gold (₹/10 g) | 24-Carat Gold (₹/10 g) |
|---|---|---|
| Mumbai | ₹1,16,600 | ₹1,27,200 |
| Chennai | ₹1,16,600 | ₹1,27,200 |
| Bangalore | ₹1,16,600 | ₹1,27,200 |
| Hyderabad | ₹1,16,600 | ₹1,27,200 |
| Kolkata | ₹1,16,600 | ₹1,27,200 |
| Jaipur | ₹1,16,750 | ₹1,27,350 |
| Ahmedabad | ₹1,16,650 | ₹1,27,250 |
Prices were largely uniform across metros, with only minor regional variation due to local taxes and making-charge differences.
Why Did Gold Prices Fall After Diwali 2025?
1️⃣ Global Dollar Strength
A firmer U.S. Dollar Index (>106) made bullion costlier for overseas buyers, prompting global ETF outflows and dragging spot gold below $2,360/oz.
2️⃣ Profit-Booking by Traders
In the weeks leading up to Diwali, gold had risen nearly ₹2,000 per 10 grams. Post-festival, many investors locked profits, creating temporary downward pressure.
3️⃣ Rising Bond Yields
U.S. Treasury yields inched up, reducing safe-haven appeal of gold and pressuring MCX futures.
4️⃣ Cooling Domestic Demand
Jewellery sales peaked during Dhanteras and Diwali. With festive shopping complete, retail footfalls eased slightly, normalising demand.
Global Context
Gold prices in the international market extended their decline, mirroring profit-booking and renewed appetite for risk assets.
According to Reuters, spot gold slipped 0.4% to $4,109.19 per ounce (as of 02:36 GMT) — marking its steepest fall since August 2020, after tumbling more than 5% in the previous session.
Meanwhile, U.S. gold futures edged 0.4% higher to $4,124.10, suggesting mild recovery buying from traders.
Spot silver also rose marginally to $48.82 per ounce.
Analysts attribute the global sell-off to profit-booking after an extended rally in bullion prices and a shift in investor sentiment toward equities and other risk assets.
Quick Summary
| Aspect | Detail |
|---|---|
| Date | 22 October 2025 |
| 24K Rate Range | ₹1,27,200 – ₹1,27,350 |
| 22K Rate Range | ₹1,16,600 – ₹1,16,750 |
| Trend | Mild Correction / Consolidation |
| Reason | Dollar strength, profit-booking, lower festive demand |
Conclusion
The gold rate today (22 October 2025) reflects a short-term correction after Diwali’s surge. Despite this dip, gold’s long-term fundamentals remain robust.
“Short-term moves don’t define wealth creation — consistency does,” says Dhwani Shah Patel. “For disciplined investors, ₹1.27 lakh per 10 grams is not a peak — it’s a pause before the next rally.”
Disclosure & Disclaimer: dhwani patel (SEBI Registration No. INH200008608) is a SEBI registered research analyst. The information shared here is purely educational and does not constitute investment advice. Trading and investing involve risk. Readers should conduct independent research.
