Gold prices in India have seen a notable decline in November, continuing a downward trend that started after the festive season. As of 10:30 AM, the price of gold stood at Rs 74,970 per 10 grams, marking a drop of Rs 1,220 from the previous Monday. This price level is nearing the lows observed in September 2023, indicating a weak domestic demand for the precious metal.Â
Gold prices had peaked at Rs 81,500 per 10 grams on October 23, just before the festive season, but began to fall after October 31, when prices were recorded at Rs 78,670 per 10 grams. This decline continued as demand for gold softened post-festival, and since then, prices have hovered around levels last seen in September. Futures prices for December 5 contracts are currently at Rs 74,031 per 10 grams on the Multi Commodity Exchange of India (MCX).
The global picture mirrors this decline. Gold has lost its appeal as a safe-haven investment as the US dollar strengthened and global political uncertainty eased following the US elections. The current global price of gold is around $2,580 per ounce, a drop reflecting the shift in investment sentiment towards equities, driven by stronger fund flows. Gold, traditionally sought after during times of economic or geopolitical instability, has become less attractive due to the strong dollar and the positive performance of equity markets.
Silver prices have followed a similar pattern. In India, silver is currently priced at Rs 89,280 per kilogram, with futures for December 5 trading at Rs 88,505 per kilogram on the MCX. This indicates a broad decline in precious metal prices both in the domestic and global markets.
