Gold and Silver Prices Rebound After Historic Crash in Global Markets

After facing their steepest slump in more than a decade, gold and silver prices showed signs of recovery on October 22, 2025. The international markets witnessed a sharp rebound in both metals following heavy profit-booking earlier in the week that had driven prices to multi-year lows.

According to data from Trading Economics, spot gold had plunged 6.3% on Tuesday, closing at 4,082.03 USD per ounce, the biggest single-day decline in 12 years. Similarly, spot silver nosedived 8.7%, settling at 47.89 USD per ounce, its sharpest fall since February 2021. Analysts attributed the selloff to widespread profit-taking after prolonged rallies in the bullion market and easing global uncertainties.​

However, by Wednesday, both metals had regained some ground. Gold rose 0.87% to reach 4,143 USD per ounce, while silver advanced over 1% to 48.26 USD per ounce, as investor sentiment stabilized. Experts said this mild uptick reflected bargain buying after two consecutive sessions of steep losses.​

The earlier crash came amid several global developments, including improved US–China trade dialogue, a stronger US dollar, and waning festival-season demand in India. Analysts also pointed to profit-booking that followed weeks of record-breaking highs fueled by central bank purchases and concerns over US economic stability.

According to Barclays, global hedge funds and long-term investors continue to hold near-record equity positions despite market volatility. Craig Johnson, chief analyst at Piper Sandler, noted that temporary weakness in equities is “healthy and necessary” to maintain sustainability in broader markets.​

In India, the Multi Commodity Exchange (MCX) was closed for the Diwali holiday, delaying domestic market reaction. Anuj Gupta, Director at IIFL Securities, stated that if global trends persist, gold and silver futures in India may open significantly lower. On reopening, December gold futures are expected around ₹1,28,000 per 10 grams, while silver futures may hover near ₹1,50,000 per kilogram.​

The near-term outlook suggests that bullion could remain volatile. Analysts caution that unless global inflation pressures rise again, gold and silver may struggle to regain their earlier record highs.