Gold and silver prices experienced a mild slip on October 28 across major Indian cities, a shift from record-high levels reached just a few days prior.
The precious metals have seen fluctuations in the lead-up to the Dhanteras festival, which falls on October 29 this year, with traders witnessing profit-booking amid a combination of geopolitical and economic factors.
Also Read: Market Outlook and Trade Setup for October 28: Nifty and Bank Nifty
Gold Prices in Major Cities
In Delhi, the price for 24K gold decreased by Rs 10, reaching Rs 89,830 per 10 grams, while in Mumbai, it settled slightly lower at Rs 80,280.
Chennai’s market similarly observed gold trading around Rs 80,280, echoing the trend across India’s top metros.
The yellow metal previously peaked at an all-time high of Rs 80,840 per 10 grams in Delhi following Israel’s reported strikes on Iranian military targets, which contributed to increased safe-haven demand.
For those eyeing 22K gold, prices in Delhi slipped to Rs 73,740 per 10 grams, while in Mumbai and Kolkata, the rate was approximately Rs 73,590.
Dhanteras, an auspicious occasion for buying valuables, is likely to hold prices steady in the upcoming days, as festive demand typically spikes during this period.
Silver Prices Dip Slightly
Silver prices also saw a decline, trading down by Rs 100 at Rs 97,900 per kilogram in Delhi, Mumbai, and Kolkata.
In Chennai, however, silver commanded a premium, trading at Rs 106,900 per kg. This marked the second consecutive day of decline for silver, a reflection of both global market trends and easing domestic demand as prices hover near the Rs 98,000 level.
Globally, spot silver traded lower, slipping 1% to approximately $33.33 an ounce in early Asian trading, having hit an overnight high of $33.7. The drop aligns with broader market pressures, as investors remain cautious amid ongoing geopolitical turmoil and renewed economic uncertainties.
Factors Influencing Recent Price Movements
The precious metals market has been responsive to several key factors recently. Stronger-than-expected U.S. labor data briefly bolstered the dollar, while gold and silver saw modest profit-taking.
The U.S. Federal Reserve’s policy on interest rates, influenced by job market data, also plays a significant role in shaping gold’s trajectory.
Investors are closely watching CME’s Fed-Watch Tool, which currently signals a high probability of a rate cut at the next Fed meeting in November.
In addition to domestic demand trends, international dynamics such as currency value shifts, fluctuations in global demand, and geopolitical risks — including the Israeli-Iran conflict — have had a tangible impact on the Indian precious metals market.
Traders expect that festive buying could counterbalance some of the recent declines, especially given Dhanteras’ tradition of gold and silver purchases.
MCX Gold and Silver Futures Trading
On the MCX, December gold futures were trading at Rs 78,634 per 10 grams, down 0.5%, while December silver futures traded lower by 0.94% at Rs 96,216 per kg.
Analysts suggest that gold has immediate support levels at Rs 78,040, with resistance around Rs 78,640, whereas silver could see support near Rs 96,100 and resistance at Rs 97,750.
The ongoing situation in the Middle East, paired with U.S. economic data releases, may drive further fluctuations in MCX prices.
