Gold and silver prices witnessed a decline in the domestic market on Wednesday, November 4, offering some relief to buyers ahead of the festive season. With Dhanteras and Diwali approaching, consumers are keeping a close watch on bullion rates before making purchases of jewellery, coins and other precious metal articles.
The price of 24-carat gold stood at ₹1,39,790 per 10 grams, while silver was trading at ₹1,78,570 per kilogram. Gold declined by ₹100, or 0.07%, while silver dropped ₹1,910, or 1.06%, according to the latest bullion market update.
The movement comes as international economic developments, currency fluctuations and expectations surrounding US monetary policy continue to influence precious metal prices. Although the recent correction has brought some relief, gold and silver remain expensive for retail buyers.
With Dhanteras falling on November 6 and Diwali on November 8, demand for precious metals is expected to attract attention over the coming days. Traditionally, households purchase gold jewellery, coins and silver utensils during this period, making price movements particularly important for consumers and jewellery retailers.
Gold and silver prices across major cities
Gold and silver rates vary across Indian cities because of differences in local taxes, transportation expenses, demand and other market-related factors.
In New Delhi, 24-carat gold was priced at ₹1,39,850 per 10 grams, while 22-carat gold stood at ₹1,27,683. The price of 999-purity silver was ₹1,77,940 per kilogram.
In Mumbai, 24-carat gold was available at ₹1,39,440 per 10 grams, while 22-carat gold was priced at ₹1,27,820. Silver traded at ₹1,78,080 per kilogram.
Bengaluru recorded a 24-carat gold price of ₹1,39,650 per 10 grams and a 22-carat rate of ₹1,28,013. Silver was priced at ₹1,78,380 per kilogram.
In Kolkata, 24-carat gold stood at ₹1,39,250 per 10 grams, while 22-carat gold was available at ₹1,27,646. The silver rate was ₹1,77,840 per kilogram.
In Hyderabad, 24-carat gold was priced at ₹1,39,660 per 10 grams, while 22-carat gold stood at ₹1,28,022. Silver was available at ₹1,78,360 per kilogram.
Chennai recorded a 24-carat gold price of ₹1,39,840 per 10 grams and a 22-carat rate of ₹1,28,187. The 999-purity silver price stood at ₹1,78,600 per kilogram.
Meanwhile, local jewellery market rates in Chennai showed an increase in 22-carat gold prices. According to rates reported by the Madras Jewellers and Diamond Merchants Association, gold rose by ₹25 per gram to ₹12,825 on Wednesday. This took the price of one sovereign, equivalent to eight grams, to ₹1,02,600, marking an increase of ₹200 from the previous day’s ₹1,02,400.
Silver prices in the Chennai retail market remained unchanged at ₹200 per gram, or ₹2 lakh per kilogram.
MCX gold and silver futures
On the Multi Commodity Exchange (MCX), gold futures for December delivery declined 0.09% to ₹1,39,333 per 10 grams during early trade. Silver futures also remained under pressure, falling 0.95% to ₹1,77,985 per kilogram.
The weakness followed another subdued session on Tuesday. MCX gold futures for December delivery declined around 0.52% to close at ₹1,39,452 per 10 grams. Silver futures settled at ₹1,79,698 per kilogram.
The latest movements indicate that both precious metals are experiencing fluctuations as investors assess global economic conditions and the outlook for interest rates.
What is influencing bullion prices?
International developments remain a major influence on gold and silver prices. Investors are closely monitoring the US midterm election results, economic indicators and expectations surrounding the Federal Reserve’s interest rate policy.
Gold prices in international markets edged higher on Wednesday, supported by a softer US dollar. However, domestic bullion rates continued to face pressure during early trade.
The possibility of tighter US monetary policy remains an important consideration. Higher interest rates generally reduce the attractiveness of gold and silver because these assets do not provide regular interest income. Consequently, investors may prefer interest-bearing financial instruments when returns become more attractive.
Geopolitical uncertainty involving Iran and the United States is another factor influencing investment decisions. Movements in crude oil prices and changing inflation expectations could also affect demand for precious metals.
Vikram Subburaj, CEO of Giottus, said gold and silver futures in India were displaying a mixed trend. He noted that lower oil prices were easing inflation concerns, while expectations of tighter US monetary policy continued to create uncertainty.
Currency movements, international bullion prices and upcoming US economic data will therefore remain important indicators for the domestic precious metals market.
What should buyers know before Dhanteras?
With the festive buying period approaching, consumers are likely to monitor gold and silver rates closely before visiting jewellery stores. However, the quoted bullion price is not necessarily the final amount buyers will pay.
Jewellery purchases generally involve making charges, GST and other applicable costs, which can increase the overall bill. Buyers should also check the purity of gold and look for the Bureau of Indian Standards (BIS) hallmark before completing a purchase.