MUMBAI: Gold bulls blinked in October as the yellow metal slipped 0.5 per cent in rupee terms after touching record highs near Rs 1.21 lakh, while silver sparkled briefly before easing 1 per cent. After months of glitter, profit-booking and a stronger dollar dimmed the bullion buzz.
Silver still outshone gold over the year, up 68.3 per cent versus gold’s 57.2 per cent. A supply squeeze and soaring ETF premiums kept silver in the spotlight, even as China curbed retail gold access and cut VAT exemptions from 13 per cent to 6 per cent.
Base metals stole the show. Copper broke above Rs 1,000, riding renewed trade optimism and mine disruptions that trimmed global inventories by nearly half. LME copper stocks fell 50 per cent, while refined production rose only 4 per cent against a 6 per cent surge in demand.
Zinc surged 4.5% as smelter shutdowns in Japan, Italy, and the US shrank supply. LME zinc stocks plunged to a two-year low of 38,000 tonnes, pushing the market into tight backwardation unseen since 1980.
Aluminium climbed 5 per cent, buoyed by easing US-China tensions and shrinking warehouse stocks, which are down 14 per cent this year. With global demand expected to soar nearly 40 per cent by 2030, supply strains are set to linger.
Energy markets flickered between hope and hesitation. Crude oil slipped 2.6 per cent on weaker demand despite geopolitical flare-ups, while natural gas gained 3.1 per cent as winter loomed and AI-driven power demand lifted consumption forecasts.
Central banks held steady, with the RBI keeping rates at 5.5 per cent and trimming inflation forecasts to 3.1 per cent. The Fed paused its balance-sheet runoff after two rate cuts this year, as the US shutdown stretched past 30 days.
From bullion dips to base metal breaks, the month painted a picture of cooling glitters and glowing grit, proof that in commodities, it’s never all gold that glitters.