Gold and silver prices have continued to fluctuate ahead of Dhanteras and Diwali, following a sharp decline in October. Prices have shown some recovery at the beginning of November, although market volatility remains. On Tuesday, November 3, 24-carat gold was priced at approximately Rs 1.39 lakh per 10 grams in the domestic market.
On Tuesday, gold prices traded around Rs 1.40 lakh per 10 grams on the Multi Commodity Exchange (MCX). According to early trading data, December gold futures were trading at approximately Rs 1,40,242 per 10 grams.
Silver prices also remained volatile. December silver futures were recorded at around Rs 1,83,555 per kilogram. However, prices of both precious metals continued to fluctuate during the trading session.
Gold and silver had witnessed a significant decline in October. During the month, gold prices on MCX fell by approximately 7%, while silver prices dropped by nearly 20%. Although prices recovered to some extent at the beginning of November, the market has yet to show stability.
On Tuesday, November 3, the price of 24-carat gold in Mumbai was approximately Rs 1,39,380 per 10 grams. Meanwhile, 22-carat gold was priced at around Rs 1,27,770 per 10 grams.
Gold prices may vary across cities and jewellery markets. Rates in Delhi, Jaipur, Lucknow and other cities may differ slightly due to local taxes, demand and dealer premiums.
Consumers planning to purchase jewellery should also note that the quoted market price of gold and the final jewellery bill may differ. Making charges and GST are added to the final cost of jewellery.
Gold and silver prices remained under pressure in international markets on Tuesday. On COMEX, gold was trading at approximately $3,954 per ounce, while silver was quoted at around $50.18 per ounce.
Gold prices recorded a decline of approximately 3% in dollar terms over the past week.
According to Satish Dondapati, fund manager at Kotak Mahindra Asset Management Company, the US Federal Reserve's hawkish stance remains a challenge for gold prices.
Expectations that US interest rates may remain elevated for an extended period could affect demand for gold. Since gold does not generate interest, some investors may prefer shifting their investments to bonds and other instruments when those alternatives offer higher returns.
