In a sudden festive turnaround for retail buyers and bullion investors preparing for Dhanteras, precious metal prices witnessed a sharp decline across Indian bullion markets on Monday, offering substantial relief ahead of peak festive demand. Comparing trades to the close of last week’s session on Friday, 24-carat gold tumbled by over ₹3,000 per 10 grams, moving from the previous trading band of ₹1,42,260–₹1,42,410 down to ₹1,38,880–₹1,39,520 per 10 grams. Jewelry buyers also saw relief in 22-carat gold, which dropped from Friday’s mark of ₹1,30,410–₹1,30,540 to ₹1,27,310–₹1,27,890 per 10 grams, delivering net savings ranging between ₹2,600 and ₹3,100 per 10 grams in retail hubs across the country.
Silver Follows Gold’s Slide: Heavy ₹10,000 Drop Shakes Retail Bullion Counters
Industrial and ornamental demand for silver experienced an equally steep correction as spot rates shed ₹10,000 per kilogram over the weekend break. After closing around the ₹2,10,000 per kilogram mark in key urban centers on Friday, white metal rates retreated to ₹2,00,000 per kilogram on Monday morning. On a granular retail scale, 10 grams of silver eased from Friday’s ₹2,100 to settle around the ₹2,000 level, presenting a strategic buying window for households purchasing auspicious silver coins, utensils, and artifacts ahead of the upcoming Dhanteras and Diwali festivities.
Crude Oil at $113 and Fed Rate Uncertainty: Macro Triggers Behind the Precious Metal Slump
The sudden retreat in bullion valuations is primarily driven by sharp shifts across international macroeconomic indicators. Escalating geopolitical friction pushed global crude oil benchmarks above $111–$113 per barrel, triggering renewed concerns regarding sticky international inflation. With energy prices threatening to reheat consumer price metrics, expectations of an interest rate reduction by the US Federal Reserve in December have diminished, with market probabilities factoring in an estimated 75 percent likelihood of an interest rate hike instead. As rising bond yields and tighter monetary conditions increase the opportunity cost of holding non-yielding precious metals, global funds have rotated capital toward government securities, reducing spot demand and driving down domestic gold and silver benchmarks.