Sharp surge in gold and silver prices during festive season

India is currently in the midst of the festive season, with Dhanteras to be celebrated on November 6 and Diwali on November 8. In India, purchasing gold and silver during these two festivals is considered of special importance and is viewed as auspicious. Ahead of these festivals, significant fluctuations have been observed in gold and silver prices. Following a single day of stability, gold prices have risen for four consecutive days. During this period, the price of 10 grams of 24-carat gold increased by a total of ₹770, while 22-carat gold rose by ₹710. However, prior to this increase, prices for 10 grams of 24-carat gold had fallen by ₹5,090 and 22-carat gold by ₹4,650 over two consecutive days.

According to reports, there has been a remarkable surge in gold and silver prices following a steep decline. Previously, gold had crashed by up to 30 per cent from its record high, and silver had fallen by nearly 60 per cent from its record high, but prices are now witnessing a bullish trend. On Wednesday, gold futures on the MCX rose by approximately ₹3,000, while silver futures increased by over ₹6,000. Prices have risen by ₹10,000 from the recent lows. The price for December silver futures is ₹1,85,719 per kg, while gold is priced at ₹1,42,423 per 10 grams.

Regarding city-wise gold prices, rates are uniform in Delhi, Lucknow, and Jaipur. In these cities, 24-carat gold is priced at ₹1,39,800 per 10 grams, 22-carat at ₹1,28,160, and 18-carat at ₹1,04,890. Prices are also identical in Mumbai, Kolkata, Bengaluru, Chennai, and Hyderabad, where 24-carat gold is ₹1,39,650, 22-carat is ₹1,28,010, and 18-carat is ₹1,04,740. Similarly, in Patna and Ahmedabad, 24-carat gold is priced at ₹1,39,700, 22-carat at ₹1,28,060, and 18-carat at ₹1,04,790. According to a TV9 Gujarati report, silver prices witnessed a decline today. Silver became cheaper after remaining stable for three consecutive days due to sluggish industrial demand. Between October 29 and 31, there was a significant drop of ₹20,000 in the price of one kg of silver. Currently, the price of one kg of silver in Delhi is approximately ₹1,99,900, which is the same in Mumbai, Chennai, and Kolkata.

The primary reason behind this price increase is the weakening of the US dollar. The US Dollar Index fell by 0.3% to 101.52, making gold cheaper for buyers in other countries and increasing international demand. Additionally, a decrease in the US 10-year bond yield reduces the cost of holding gold for investors. Market uncertainty regarding the Democratic Party's gains in the US midterm election results and the policies of the Trump administration is also a factor. Tensions between the US and Iran, along with geopolitical instability, support the demand for gold as a safe-haven investment. Festive demand in India is also significant, although high prices are putting pressure on jewellery demand. According to the World Gold Council, India's gold demand could reach a six-year low in 2026. Currently, gold is ₹52,000 cheaper and silver is ₹2.35 lakh cheaper than their respective highs.

According to experts, Vandana Bharti of SMC Global Securities believes that gold may appear strong in the short term. For COMEX gold, the $4,000 per ounce level is critical; if breached, prices could reach $4,200, while $3,900 serves as key support. On the MCX, gold is moving towards ₹1,42,000 per 10 grams and is finding support at ₹1,37,000. Gold and silver prices in India remain dependent on factors such as the international market, the position of the rupee against the dollar, local demand, festive purchases, and the interest rate policies of the US Federal Reserve.