Gold price today: MCX gold tumbles 6% to ₹120,600 per 10 grams; what's ailing the precious metal?

Gold prices on the MCX opened sharply lower in Wednesday’s evening session, with the December futures contract starting at ₹124,423 per 10 grams and sliding further to ₹120,575, their lowest level since October 10, marking a 6% drop from the previous close.

Meanwhile, spot gold prices also extended their decline on Wednesday, falling over 3% to below $4,007 per ounce, resulting in a cumulative two-day drop of around 8%. They are currently at their lowest level since October 13. On Tuesday, bullion had plunged over 5%, marking its steepest daily drop since August 2020.

The morning trading session (MCX) for precious metals remained closed on account of Diwali Balipratipada, and trading resumed in the evening. Bullion traders were surprised to witness a significant crash, with experts attributing the sharp decline to profit booking after an unstoppable rally in prices, as gold had surged nearly 72% to its highest level.

Today's price crash is also the biggest single-day fall the prices have witnessed in five years, leading to a ₹12,000 drop per 10 grams from its recent peak of ₹132,294, touched last week.

Alongside profit booking, the easing of trade tensions between the US and China appears to have boosted investors' risk appetite, leaving gold prices in a sustained decline.

US President Donald Trump said he expects to reach a fair trade deal with Chinese President Xi Jinping when the two meet next week in South Korea. Moreover, Mint earlier today reported that New Delhi and Washington are nearing a long-stalled trade agreement that would reduce US tariffs on Indian imports to 15–16% from 50%.

The prices, which had zoomed and beaten expectations, have outperformed all other asset classes in 2025 so far. MCX gold has remained higher in all of the last nine months, with September marking the largest monthly gain of nearly 13%. The prices crossed the ₹1 lakh mark for the first time in July and have remained above it since.

Despite the recent pullback, gold remains up 58% year-to-date, supported by expectations of further Federal Reserve easing and ongoing geopolitical uncertainties, including reports that the planned Trump-Putin summit was postponed after Moscow refused a Ukraine ceasefire.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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