With major Indian festivals including Karwa Chauth, Dhanteras, and Diwali right around the corner, falling gold and silver prices are presenting a crucial dilemma for shoppers and investors.
While the recent price drop offers relief to festive buyers, persistent global economic uncertainty has sparked debate over whether to buy precious metals now or wait for a potential further decline.
On the Multi Commodity Exchange (MCX), gold was trading down 0.49% at Rs 1,42,611 per 10 grams, while silver fell 1.71% to Rs 1,96,198 per kg. The downward trend is largely driven by a sharp rise in international crude oil prices, which jumped around 4% following Houthi attacks on Saudi Arabia.
Surging energy costs have reignited global inflation fears, raising concerns that the US Federal Reserve may keep interest rates elevated for a longer duration. Higher interest rates generally dampen demand for non-yielding bullion assets.
Investors are closely watching the upcoming US Fed meeting (October 27–28) and Personal Consumption Expenditures (PCE) inflation data for further direction.
Despite recent weakness, market analysts suggest bullion prices may be nearing solid support zones. Dr Renisha Chainani of Augmont notes that gold is holding around $3,950–$4,000, while silver is seeking support near $50–$55, with a potential 10–15% rebound expected in the coming weeks once immediate macroeconomic pressures ease.
Key Technical Support and Resistance Levels:
- MCX Gold: Immediate resistance is seen in the Rs 1,43,000–Rs 1,43,700 range, followed by Rs 145,300–Rs 146,000.
- MCX Silver: Remained under pressure after breaking below its key Rs 2,00,000–Rs 2,02,000 support zone.
Strategy for Buyers and Investors
For households making festive purchases for Dhanteras and Diwali, financial experts recommend taking a staggered approach. Instead of making lump-sum purchases, splitting buying decisions into smaller tranches can help mitigate short-term volatility.
Shoppers are also advised to carefully compare making charges and tax costs. Long-term investors should prioritise financial goals over short-term market fluctuations, maintaining a planned investment schedule.