Gold prices in India eased to Rs 12,507/gram (24K) and silver to Rs 1.59 lakh/kg on Oct 24.After a record-breaking run through the festive weeks, gold and silver prices in India are taking a breather. er a record-breaking run through the festive weeks, gold and silver prices in India are taking a breather.Retail rates dipped slightly across major cities, tracking a correction in global bullion and a stronger US dollar.

A combination of three developments has triggered the current market selloff in gold, reshaping immediate trading patterns.Firstly, profit-booking after sustained periods of gains. Gold-backed ETFs experienced their most substantial single-day tonnage withdrawal in five months, indicating that institutional investors are reducing their positions following elevated valuations at consecutive record highs.

Secondly, the dollar index has shown strength over three straight sessions, effectively diminishing gold’s attractiveness by increasing its cost for those holding other currencies. This fundamental relationship between currency values and commodity prices has become prominent again, after being temporarily overshadowed by safe-haven trading during gold’s upward movement.

Furthermore, increased confidence regarding possible US–China trade deal has reduced the appeal of defensive investments. The White House has confirmed that Trump will hold discussions with Chinese President Xi Jinping in the coming days.

In a similar vein, gold prices in the global market declined on Friday and were set for their first weekly decrease in ten weeks, impacted by a stronger dollar and market participants adjusting their positions ahead of a significant US inflation report expected later in the day.

In dollar terms, gold has support at $4,020–$3,975 and resistance at $4,125–$4,170. Silver’s support lies at $47.85–$47.40, with resistance at $48.75–$49.30.

In Indian rupee terms, gold has support at Rs 1,21,070–Rs 1,20,580 and resistance at Rs 1,22,350–Rs 1,23,000. Silver is supported at Rs 1,44,350–Rs 1,43,450 and faces resistance near Rs 1,46,850–Rs 1,47,780.

Analysts believe gold could continue to trade in a narrow range ahead of Friday’s US CPI report, which is expected to provide clues on inflation and future rate decisions.