Gold futures slid 1.7% to $4,072.30, silver fell 4% to $55.72, while domestic bullion prices dropped ₹1,000 per 10 grams and ₹5,900 per kilogram— a sharp drop ahead of the Dhanteras and Diwali rush.
Spot gold on global exchanges fell 1.7% to $4,072.30, and silver fell 4% to $55.72, according to PTI, echoing a broader sell‑off in precious metals.
The correction comes as crude oil prices surge, inflation worries persist, and traders anticipate a hawkish U.S. Federal Reserve, all of which dampen demand for non‑yielding bullion.
Ashish Rajodiya, Head of Commodities at PL Capital, said, “Gold is caught between geopolitical uncertainty and concerns over higher interest rates.” He added that rising oil has revived inflation fears, tightening the case for elevated rates.
Gaurav Garg of Lemonn echoed the sentiment, noting that elevated borrowing costs are putting extra pressure on industrial demand for silver and eroding the safe‑haven appeal of gold.
Looking ahead, market participants are keeping a close eye on the Fed’s October 27–28 meeting and upcoming U.S. CPI data, while currency swings will also influence domestic bullion costs. Investors planning festive purchases should factor in making charges, taxes, and purity when evaluating the total cost of gold and silver.