MCX gold price falls 7.9% in October as oil, rate worries hit bullion
MCX gold price fell 7.9% in October to Rs 1,38,419 per 10 grams and 2.5% this week, as rising oil and rate worries weighed on bullion.
The MCX gold price has had a sharp fall. Gold futures on the Multi Commodity Exchange (MCX) for December expiry dropped 2.5% this week and 7.9% over October, ending the month at Rs 1,38,419 per 10 grams compared with Rs 1,50,390 on October 1. Silver also slid to its lowest levels of the year.
Why gold is falling
The main trigger has been a jump in crude oil prices. Brent crude rose to its highest level since April as the possibility of renewed US military action against Iran grew. Higher oil prices complicate the inflation outlook and strengthen expectations that US interest rates will stay high for longer, which tends to weigh on non-yielding assets like gold.
A global selloff in technology stocks added to the pressure, with some investors selling bullion to cover losses elsewhere. Higher oil prices are pushing markets into a risk-off mood that is also draining liquidity, according to TD Securities’ Bart Melek, as quoted by Bloomberg.
Worst October in years for global gold
International prices have had their worst October since 2008. Gold fell as much as 3.6% to $3,876.39 an ounce, its lowest level since early October 2025, according to Bloomberg.
Key numbers
- MCX gold (Dec futures), October 1: Rs 1,50,390 per 10 g
- MCX gold, end of October: Rs 1,38,419 per 10 g (-7.9%)
- Weekly fall: 2.5%
- International low: $3,876.39 an ounce (-3.6% intraday)
What happens next
Prices are expected to stay volatile. A stronger dollar, rising bond yields and expectations of higher interest rates could limit any quick recovery, according to Siddharth Maurya of Vibhavangal Anukulakara. On the other hand, demand during the festive and wedding season, including Dhanteras and Diwali, could offer some support to domestic prices. Over the longer term, buying by central banks remains a supportive factor for gold, he said.
Frequently asked questions
How much did the MCX gold price fall in October 2026?
MCX gold futures for December expiry fell 7.9% in October, from Rs 1,50,390 per 10 grams on October 1 to Rs 1,38,419.
Why are gold prices falling?
Rising crude oil prices revived inflation worries and expectations that US interest rates will stay high, while a global tech selloff led investors to sell gold to cover losses.
This article is a summary for information only and is not investment advice. Figures are as reported by the sources above; please verify with the original filing or report before making any decision.