Gold and silver prices recovered on November 5, ahead of Dhanteras, after witnessing sharp corrections from their record highs earlier this year.
A weaker US dollar and lower US Treasury yields have supported the latest international rally, although uncertainty around the US Federal Reserve’s interest rate outlook continues to keep precious metals volatile.
On the MCX, December gold futures were trading at ₹1.44 lakh per 10 grams, up 1.11%, while December silver futures stood at ₹1,87 lakh per kg, gaining 0.12%, at the time of writing.
The rebound comes after gold fell from an international peak of nearly $5,600 per ounce in January 2026 to below $4,000 an ounce. Silver, which had crossed $100 per ounce, also witnessed a steep correction.
What is supporting the latest recovery?
Ashish Rajodiya, Head of Commodities at PL Capital, attributed the recent international price gains to a weaker dollar and declining Treasury yields following the US midterm election outcome. He said expectations of political gridlock and tighter federal spending had influenced market sentiment.
However, the outlook remains sensitive to US monetary policy. Persistent geopolitical tensions, including those involving the US and Iran, have also supported safe-haven demand.
Is the correction changing gold’s long-term outlook?
Not necessarily, according to market analysts. Motilal Oswal Financial Services, in its latest precious metals report, Gold’s Rally: Deferred, Not Derailed, maintains a positive long-term outlook despite near-term volatility.
Dhruv Joglekar, Assistant Fund Manager at Monarch PMS, described the sharp correction as a technical deleveraging event rather than a reversal of the broader bull cycle. According to Monarch Networth Capital, domestic 24-carat gold prices have risen around 7%-8% year-on-year ahead of Dhanteras 2026.
Where could gold prices head next?
Motilal Oswal sees international gold in an accumulation range of $3,800-$3,900 per ounce, with a medium-term target of $4,500-$4,700 an ounce. For domestic gold, it identifies ₹1.35 lakh per 10 grams as an accumulation level and sees potential for prices to reach ₹1.60 lakh-₹1.68 lakh per 10 grams over the medium term, assuming USD/INR at 96.
The brokerage also sees greater upside potential in silver but cautions that the metal carries higher price volatility.
How should buyers approach Dhanteras?
Vedant Gupte, Co-Founder and CEO of investment platform Trackk, said gold-buying preferences were gradually shifting towards coins, lighter jewellery and exchange-traded products such as gold ETFs.
For investors, the distinction between buying gold for personal use and investing in it remains important. Jewellery purchases involve making charges and other costs, while exchange-traded options offer exposure to gold prices without the need for physical storage.
Dishi Somani, Founder of DishiS Designer Jewellery, said buyers are considering design, personal style and the long-term value of jewellery while making festive purchases. She noted that Dhanteras buying continues to be driven by the traditional association of gold with prosperity, security and new beginnings.
NOTE TO READERS
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.