Gold price today: Rates rise on MCX amid softer dollar ahead of Diwali 2025; what should investors do?

Gold price today: Rates of gold rose on the MCX Monday (October 20) morning amid healthy spot demand and a softer US dollar. MCX Gold December futures traded 0.78 per cent higher at ₹1,28,005 per 10 grams around 9:15 am. MCX Silver December contracts were 0.41 per cent up at ₹1,57,240 per kg at that time.

Gold prices recovered in international markets after suffering sharp losses in the previous session, following US President Donald Trump’s comments on China tariffs that prompted investors to book profits in the yellow metal and shift towards riskier assets.

"Gold prices rose to $4,255/oz on Monday after a sharp decline on Friday, with investors closely monitoring upcoming talks between the US and China. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are set to meet this week, with President Donald Trump expressing optimism last week that negotiations could lead to an agreement, while calling his threatened high tariffs unsustainable," Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted.

Gold prices suffered massive losses in the previous session. MCX Gold's December futures contracts crashed by 2 per cent to settle at ₹1,27,320 per 10 grams, while US gold futures crashed over 2 per cent to end at $4,213.30 per troy ounce.

Gold prices have surged by over 70 per cent in the domestic spot market, on increased global political and economic uncertainties, strong central bank buying, US Fed rate cut hopes, and robust inflows in exchange-traded funds (ETFs).

What should investors do?

Some experts suggest waiting for some correction in gold prices before initiating buys.

"It is advisable to wait for prices to normalise. After a rally of over 85 per cent in silver and 70 per cent in gold, ₹1,18,000- ₹1,20,000 is a good level to buy in gold and ₹1,40,000 in silver," said Vandana Bharti, the head of commodities research at SMC Global.

Bharti believes gold can touch ₹1,35,000- ₹1,36,000 by year-end, supported by relentless central bank and ETF demand.

Silver, fueled by the extreme physical supply squeeze, is technically targeting ₹1,75,000 to ₹1,80,000, assuming no immediate correction in the backwardation spreads, said Bharti.

Sugandha Sachdeva, Founder of SS WealthStreet, pointed out that gold prices appear to be in an overbought territory, so there may be a healthy correction, both in price and time.

"Market participants should prepare for potential pullbacks, especially if key macro variables shift. However, after a brief pause, we still see gold heading towards ₹1,45,000-1,50,000 per 10gm or around $4,770 per ounce, so buying on dips and in phases seems to be a prudent strategy," said Sachdeva.

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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.