Gold prices in India continued their downward movement on Friday, November 13, falling by Rs 2,500 to Rs 1,40,900 per 10 grams in New Delhi. Weak international market trends, subdued retail demand after Diwali and rising US Treasury yields weighed on precious metals.
According to the All India Sarafa Association, 99.9% pure gold declined from Thursday’s closing price of Rs 1,43,400 per 10 grams. This marked the fourth consecutive session of losses for domestic gold prices.
Silver prices also moved lower, declining by Rs 3,500 to Rs 1,84,000 per kg, compared with the previous close of Rs 1,87,500. Both prices are inclusive of applicable taxes.
Why Are Gold Prices Falling in India?
The decline in domestic gold prices reflects a combination of weaker global cues and reduced buying activity following the festive season.
Gold demand typically receives a boost during Dhanteras and Diwali, when households purchase jewellery and coins. With the major festive buying period over, retail demand has softened, putting additional pressure on domestic prices.
Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said domestic gold prices remained under pressure because of weak global trends and subdued retail demand following Diwali.
The stronger US dollar and rising Treasury yields have also made gold less attractive to investors. Since gold does not generate interest income, higher interest rates increase the opportunity cost of holding the metal.
International Gold Prices Slip Below $4,000
In international markets, spot gold recovered by $27.21, or 1%, to $3,904.87 per ounce on Friday. However, this followed a sharp decline of around 3% in the previous session, when prices settled at $3,877.52 per ounce.
Gold had slipped below the psychologically important $4,000 level after touching a fresh 52-week low.
The recent selloff gathered momentum after US President Donald Trump’s remarks that Washington did not need a peace agreement with Tehran weakened expectations of an immediate diplomatic breakthrough. Continuing tensions in West Asia have also supported crude oil prices, adding to inflation concerns.
Silver Faces Additional Pressure
Silver also remained under pressure in the domestic market, falling to Rs 1,84,000 per kg. Internationally, the metal remained largely unchanged at $50.04 per ounce on Friday.
Vikram Subburaj, CEO of Giottus.com, said rising US Treasury yields and a stronger dollar were weighing on silver. He also pointed out that silver is more sensitive to changes in investor risk appetite and expectations around industrial demand.
US Economic Data Could Influence the Next Move
Investors are now watching US Producer Price Index (PPI) and core PPI data for fresh indications about inflation and the Federal Reserve’s monetary policy direction.
Speeches by Federal Reserve officials will also be monitored for clues about the central bank’s December policy decision.
Jateen Trivedi, Vice President and Research Analyst for Commodity and Currency at LKP Securities, expects volatility to remain elevated as currency movements and geopolitical developments continue to influence bullion prices.
Summary
Gold prices in New Delhi fell by Rs 2,500 to Rs 1,40,900 per 10 grams on November 13, extending their losing streak to four sessions. Weak global trends, a stronger dollar, rising US yields and fading post-Diwali demand have weighed on prices. Investors are now watching US inflation data and Federal Reserve signals for further direction.