Gold prices have dropped by more than 5% over the last month as consumers are stepping up jewellery purchases and placing advance orders amid the ongoing festive season in anticipation of a potential rebound in prices.
As of November 3, 24-karat gold prices fell to ₹139,101 per 10 grams in Delhi, while 22-karat gold prices stood at ₹127,416 per 10 grams. This came after gold prices staged a modest recovery to ₹142,500 per 10 grams on Monday, as jewellers and retailers increased purchases ahead of Dhanteras.
Silver prices also fell from ₹1.86 lakh per kilogram on Monday to ₹178,643 on Tuesday. Last month, silver prices tumbled by around 20% from ₹2.32 lakh per kg recorded on September 30.
Gold demand likely to go up
While the ongoing Iran war and the rupee’s weak performance against the US dollar continue to weigh on the precious metal, reports suggest gold purchases have picked up since last week and are expected to continue till Dhanteras on November 6.
Surendra Mehta, national secretary of the India Bullion and Jewellers Association, told a news publication that sales volumes are likely to rise 10-12% from the same period last year on Dhanteras.
However, the World Gold Council (WGC) has predicted that India’s gold demand will fall to a six-year low in 2026 due to a weak monsoon. This year’s monsoon delivered its lowest rainfall in more than a decade, hampering agricultural production and reducing farmers’ incomes, the WGC said in a report on Tuesday.
Consumers opting for lightweight jewellery
Gold is sold in the retail market in multiple purity grades to meet different consumer requirements. While 24-karat gold represents the highest level of purity, 22-karat gold is widely preferred for jewellery manufacturing because its alloy composition provides greater strength and durability.
However, elevated gold prices have pushed consumers towards purchasing lightweight jewellery and lower-carat gold products to reduce costs. Notably, 18-carat jewellery, which contains 75% pure gold, has seen a rise in sales this year due to lower prices and greater durability.