Gold and Silver Prices Tumble in Indian Markets Amid Profit Booking and Dollar Strength.

Gold and Silver Prices Tumble in Indian Markets Amid Profit Booking and Dollar Strength

Gold and silver prices saw a sharp correction in Indian markets on September 8, 2025, as investors opted to book profits after a historic rally in precious metals. The Multi Commodity Exchange (MCX) witnessed October gold futures slip by Rs 606, or 0.56%, to Rs 1,07,122 per 10 grams, retreating from the prior session’s record high of Rs 1,07,807. Meanwhile, December silver futures declined Rs 977, or 0.78%, to Rs 1,23,720 per kilogram, off recent 14-year highs of Rs 1,26,300 posted on September 3.

This pullback came against a backdrop of elevated gold prices fueled by strong bets on upcoming U.S. Federal Reserve interest rate cuts. The catalyst for the bullish metals surge was disappointing U.S. employment data released last week, where the economy added only 22,000 jobs in August against expectations of 75,000, pushing the unemployment rate to 4.3%, its highest in nearly four years. Market participants have since priced in a near-certain 25 basis points rate cut at the Fed’s September meeting, with some speculation of a larger easing move.

Despite these supportive fundamentals, the U.S. dollar showed resilience, weighing on precious metals globally. The dollar’s strength, combined with investors locking in profits, contributed to the gold and silver price corrections. Analysts note the market remains volatile ahead of crucial U.S. inflation data due later this week, which could influence Federal Reserve policy direction and metal prices further.

In India’s physical markets, gold prices had surged to fresh peaks recently, driven by robust demand and global cues. Spot gold of 99.9% purity reached Rs 1,07,870 per 10 grams in New Delhi, while silver hit a new high of Rs 1,27,000 per kilogram, reflecting a strong appetite among Indian buyers.

Looking ahead, precious metals are expected to see continued fluctuations as traders digest mixed economic signals—from weak job creation and hints of monetary easing in the U.S. to fluctuating dollar trends. Investors should watch upcoming U.S. inflation figures closely, as these will be key to determining if gold and silver can sustain their recent gains or face further pressure.

This period highlights the intricate balance between global economic policies, currency movements, and commodity market behavior that Indian investors should navigate carefully when considering precious metals as part of their portfolios.