English
English
English
Gold prices record their steepest weekly decline since June as global bullion markets face renewed selling pressure. (Img: Pinterest)
Mumbai: Gold and silver prices are facing renewed selling pressure in domestic and international bullion markets, with gold registering its sharpest weekly decline since June. The correction has brought some relief to Indian jewellery buyers, as prices of precious metals remain below their levels at the beginning of November.
The decline comes amid growing uncertainty over the US Federal Reserve's monetary policy, concerns about persistent inflation and elevated crude oil prices. Investors are closely tracking global economic indicators, interest-rate expectations and movements in the US dollar to assess the next direction of bullion prices.
For Indian consumers planning jewellery purchases during the ongoing wedding season, the latest correction could offer a relatively favourable buying opportunity. However, gold and silver rates continue to fluctuate, and the final price of jewellery will depend on purity, making charges, GST and city-specific retail pricing.
International gold prices registered a 4.5 percent decline during the week, marking their steepest weekly fall since June. Spot gold edged up 0.1 percent to USD 3,879.71 per ounce after briefly touching USD 3,922.97 following the release of US Producer Price Index data. Meanwhile, US gold futures for December delivery settled largely unchanged at USD 3,886.30 per ounce.
The weekly correction reflects changing expectations surrounding the Federal Reserve's interest-rate trajectory. Market participants are assessing whether persistent inflationary pressures could encourage the US central bank to maintain restrictive monetary conditions or consider further rate increases.
Higher interest rates generally create an unfavourable environment for gold because the precious metal does not generate interest income. When yields on interest-bearing assets become more attractive, investors may reduce their exposure to non-yielding assets such as gold. Elevated crude oil prices have added another layer of uncertainty by raising concerns about inflation and the possibility of tighter monetary policy.
The weakness in international bullion markets has extended beyond gold. Spot silver declined 1.9 percent to USD 49.05 per ounce, reflecting selling pressure across the precious metals segment. Platinum also fell 1.9 percent to USD 1,490.06 per ounce, while palladium moved in the opposite direction, gaining 1.1 percent to USD 1,004.40 per ounce. The contrasting movements underline the different demand and investment dynamics influencing individual precious metals.
Silver, in particular, is influenced by both investment demand and industrial consumption. Its exposure to manufacturing, electronics, solar energy and other industrial applications can make its price movements different from those of gold.
(Img: X)
Domestic gold and silver prices remain below their November 1 levels, according to the retail price data cited in the report. At the time of reporting, a separate bullion market quotation placed gold at Rs 1,37,320 per 10 grams and silver at Rs 1,77,280 per kilogram. Goodreturns retail pricing, meanwhile, placed 24-karat gold at Rs 13,762 per gram and silver at Rs 195 per gram.
These figures represent different reported price references and should not be treated as directly interchangeable. Consumers should check the applicable jeweller or bullion benchmark before making a purchase.
According to the cited retail data, 24-karat gold was priced at Rs 13,762 per gram on November 15, compared with Rs 13,888 on November 1. This represents a decline of Rs 126 per gram. On a 10-gram basis, the corresponding price reduction amounts to Rs 1,260, while the difference across one kilogram of gold works out to Rs 1,26,000.
The 22-karat gold rate has also declined during the same period. Its price fell from Rs 12,730 per gram on November 1 to Rs 12,615 on November 15, representing a reduction of Rs 115 per gram. Consequently, the 10-gram price of 22-karat gold declined from Rs 1,27,300 to Rs 1,26,150, a reduction of Rs 1,150. For buyers purchasing larger quantities, the equivalent difference per kilogram is Rs 1,15,000.
Silver has also experienced a significant correction after reaching higher levels earlier in the month. According to the cited Goodreturns data, silver was priced at Rs 195 per gram on November 15, compared with Rs 200 per gram on November 1. On a kilogram basis, the rate declined from Rs 2,00,000 to Rs 1,95,000, representing a reduction of Rs 5,000 or 2.5 percent.
The metal had reached a reported peak of Rs 2,10,000 per kilogram on November 5 before declining to Rs 1,95,000 on November 13. Prices have remained broadly unchanged since that correction. The movement highlights the volatility in silver markets, where investment sentiment, industrial demand and international commodity trends collectively influence domestic retail prices.
Also Read: NZ vs India 5th ODI: Arshdeep, Siraj Star As India Beat New Zealand To Clinch Series 3-1
Gold prices continue to show marginal differences across major Indian cities because of variations in local taxes, transportation expenses, logistics and jewellery market conditions.
According to the cited retail rates, 24-karat gold was priced at Rs 13,777 per gram in Delhi, while 22-karat gold stood at Rs 12,630 per gram. Delhi's 24-karat rate was approximately Rs 15 higher than the cited national retail benchmark.
Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Kerala were reporting 24-karat gold at Rs 13,762 per gram. Ahmedabad and Vadodara were quoting the metal at Rs 13,767 per gram.
These differences are relatively small but can influence the final purchase cost, particularly for consumers buying larger quantities of gold jewellery. For buyers comparing prices, it is important to distinguish between the bullion rate, the retail jewellery rate and the final invoice value charged by an individual jeweller.
Gold purity is an important consideration when purchasing jewellery or investing in physical gold. 24-karat gold represents approximately 99.9 percent purity and is commonly associated with investment products such as gold bars and coins. Its relatively high purity makes it softer and less suitable for many types of everyday jewellery.
22-karat gold contains approximately 91.6 percent pure gold, with the remaining proportion consisting of other metals used to improve durability. It is widely preferred for traditional Indian jewellery, including wedding ornaments. 18-karat gold contains 75 percent pure gold and is frequently used in contemporary jewellery, diamond-studded ornaments and designer pieces.
The price of 18-karat gold is generally lower than that of 22-karat and 24-karat gold because of its lower gold content. However, the final retail price also depends on craftsmanship, design complexity, gemstone settings and making charges. Consumers should check the BIS hallmark and HUID identification details when purchasing hallmarked gold jewellery to verify its declared purity.
Gold prices had climbed significantly during the festive season, supported by traditional jewellery purchases, investment demand and increased buying activity around Dhanteras and Diwali. According to the cited retail price data, 24-karat gold reached Rs 14,460 per gram on November 9, the first trading session following the festival. Since then, prices have declined on most trading days as festive buying momentum eased and some investors booked profits after the earlier rally.
From the November 9 peak, gold has shed Rs 698 per gram. Silver has also corrected substantially, falling Rs 15,000 per kilogram from its November 5 peak. The decline reflects a combination of seasonal demand normalisation, profit-booking activity and pressure from international bullion markets.
The festive season often produces a temporary increase in jewellery purchases in India, one of the world's largest gold-consuming markets. Once this concentrated demand begins to ease, prices can become more sensitive to international market developments and investment flows.
The outlook for gold will depend heavily on developments in the global economy and financial markets. The US Federal Reserve's interest-rate decisions remain a major factor influencing bullion prices. Expectations of higher interest rates can increase the opportunity cost of holding gold, while expectations of monetary easing may improve its investment appeal.
The US dollar is another important variable. Gold is internationally traded in dollars, meaning fluctuations in the American currency can influence its affordability for buyers using other currencies, including the Indian rupee. Crude oil prices, inflation expectations, geopolitical developments and central-bank gold purchases can also influence investor sentiment.
In India, domestic gold prices additionally depend on rupee-dollar exchange rates, import-related costs, local demand and applicable taxes. Consequently, even when international gold prices decline, the extent of the benefit passed on to Indian consumers may vary depending on currency movements and domestic market conditions.
The latest correction could provide some relief to households preparing for weddings and other important occasions. For families planning to purchase traditional jewellery, even a modest reduction in the per-gram price can translate into meaningful savings when buying heavier ornaments.
For example, the metal value of a 10-gram 22-karat gold ornament has declined from Rs 1,27,300 on November 1 to Rs 1,26,150 on November 15, according to the cited retail figures. However, the final jewellery bill will be higher because the quoted gold rate represents only the underlying metal value.
Making charges generally range from approximately 5 percent to 18 percent, depending on the design, craftsmanship and jeweller. A 3% Goods and Services Tax is also applicable to jewellery purchases under the prevailing tax framework.
Consumers should therefore compare the complete invoice value rather than relying exclusively on the advertised gold rate. Jewellery buyers should also check purity certification, wastage calculations, buyback conditions and exchange policies before completing a transaction.
