Dhanteras Brings A Golden Buying Opportunity, Gold Falls Below ₹1.43 Lakh And Silver Sheds ₹3,400 As Global Markets Turn Volatile

Mumbai: Gold and silver prices declined sharply in domestic futures trading on Friday, November 6, as a stronger US dollar, profit-booking and renewed inflation concerns weighed on precious metals during Dhanteras.

On the Multi Commodity Exchange (MCX), December gold futures fell 1.16 per cent to ₹1,42,421 per 10 grams in early trading, while silver futures declined 1.36 per cent to ₹1,84,600 per kilogram.

Gold Prices

Gold faced selling pressure after recovering earlier in the week, with traders reassessing expectations surrounding US interest rates. The yellow metal's decline came despite festive buying interest ahead of Diwali. International gold prices also weakened as investors reacted to movements in the dollar and bond yields.

Silver Rates

Silver witnessed a sharper decline in percentage terms, slipping below ₹1.85 lakh per kilogram in domestic futures trading. The white metal remained sensitive to global economic developments, industrial demand expectations and movements in precious metals markets.

Global Pressure

A rebound in crude oil prices revived concerns about inflation and the possibility of tighter US monetary policy. Higher interest rates generally weigh on non-yielding assets such as gold. Weakness in global equity markets also prompted some investors to reduce precious metals exposure.

Dhanteras Demand

The price correction coincided with Dhanteras, traditionally an important occasion for gold and silver purchases in India. Lower prices could attract buyers seeking jewellery, coins and investment products ahead of Diwali. Retail prices, however, vary depending on purity, location, taxes and making charges.

Market Outlook

Investors are awaiting US employment data for further indications about the Federal Reserve's interest rate trajectory. Movements in crude oil, the dollar and geopolitical developments could influence bullion prices in subsequent sessions. Traders will also monitor whether festive demand supports domestic gold and silver prices.

Disclaimer: Precious metal prices fluctuate with market conditions. This report is informational and should not be treated as investment advice.

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