Gold Falls By Rs 700, Silver By Rs 2,000: Will Dhanteras And Diwali Buying Change The Trend?

Gold prices in Delhi fell by Rs 700 to Rs 1,41,800 per 10 grams on Tuesday, while silver declined by Rs 2,000 to Rs 1,84,000 per kg. A global sell-off, rising crude oil prices and profit booking weighed on bullion.

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Gold prices fall, silver drops too

Gold and silver prices declined in the national capital on Tuesday, November 3, as a global sell-off, rising crude oil prices and profit booking put pressure on precious metals. Gold prices fell by Rs 700 per 10 grams, while silver recorded a sharper decline of Rs 2,000 per kilogram.

The fall comes at a time when investors are closely tracking international market movements and important economic developments in the United States. Meanwhile, India's gold demand has remained under pressure due to high prices, although the approaching wedding and festive season could encourage fresh purchases.

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Gold prices fall by Rs 700 in Delhi

Gold of 99.9 per cent purity fell by Rs 700 to Rs 1,41,800 per 10 grams in the national capital on Tuesday. The price included all taxes. On Monday, the precious metal had closed at Rs 1,42,500 per 10 grams, according to the All India Sarafa Association.

Silver prices also moved lower after remaining unchanged in the previous trading session. The white metal dropped by Rs 2,000 to Rs 1,84,000 per kilogram, including all taxes, compared with its previous closing price of Rs 1,86,000 per kg.

Market experts attributed the decline in domestic bullion prices to weak international signals, a recovery in crude oil prices and investors booking profits after the recent movement in gold prices.

Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said gold prices gave up some of their gains on Tuesday because of weak global market signals and a recovery in international crude oil prices.

He also pointed out that the approaching festive season could provide some support to domestic gold prices. Jewellery purchases are expected to increase as consumers prepare for Dhanteras and Diwali, when buying gold is considered auspicious.

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International gold and silver prices decline

The decline in domestic bullion prices followed a fall in international markets. Spot gold dropped by USD 41.19, or 1.04 per cent, to USD 3,905.44 per ounce.

International silver prices also witnessed a sharp correction, falling by more than 3 per cent to USD 48.97 per ounce.

Jateen Trivedi, Vice President and Research Analyst for Commodity and Currency at LKP Securities, said gold prices had fallen sharply as traders continued to book profits.

He explained that the selling pressure had pushed gold prices closer to oversold territory. However, a sustained recovery would depend on fresh buying interest and developments in global markets.

Investors are also keeping a close watch on important developments in the United States. These include the election outcome, unemployment figures and nonfarm payrolls data.

According to Trivedi, these developments could provide important clues about the future policy decisions of the US Federal Reserve. Any changes in expectations about interest rates could influence investment demand for gold and other precious metals.

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India's gold demand falls 29 per cent in July-September

While international prices have remained an important factor for bullion markets, India's gold demand has also shown signs of weakness.

According to the World Gold Council's (WGC) 'Q3 2026 Gold Demand Trends' report, India's total gold demand declined by 29 per cent year-on-year to 162.5 tonnes during the July-September quarter of 2026.

The country had recorded gold demand of 229.8 tonnes during the corresponding quarter of 2025.

The WGC attributed the decline to higher import duty, rising gold prices and the Prime Minister's appeal to people to reduce gold purchases.

Despite the fall in the quantity of gold purchased, the total value of demand increased. India's gold demand value rose by 3 per cent to Rs 2,41,900 crore during the quarter, compared with Rs 2,35,090 crore in the same period last year.

This increase in value came even as consumers purchased less gold, reflecting the impact of higher prices.

The average gold price during the July-September quarter stood at USD 4,262 per troy ounce, equivalent to Rs 1,48,891 per 10 grams. In the corresponding quarter of 2025, the average price was USD 3,457 per ounce, or Rs 1,02,287 per 10 grams. These prices were calculated without import duty and GST.

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Jewellery purchases decline as high prices affect buyers

Jewellery demand, one of the biggest components of India's gold market, also recorded a decline.

The WGC report showed that jewellery demand fell by 20 per cent year-on-year to 99.9 tonnes in the July-September quarter, compared with 125 tonnes during the same period in 2025.

However, the value of jewellery purchases increased by 16 per cent to Rs 1,48,700 crore.

Sachin Jain, Regional CEO of the World Gold Council in India, said the latest figures showed that Indian consumers continued to consider gold an important purchase despite higher prices.

He said consumers were adjusting their buying decisions to balance affordability with the long-term value of gold.

Jain explained that jewellery demand received some support from a correction in gold prices towards the end of the third quarter. This encouraged some consumers who had postponed their purchases to return to the market.

Wedding-related purchases and festive buying also supported demand, particularly in South India, where several important festivals took place in August.

He added that consumers were increasingly choosing lighter jewellery and exchange programmes to manage the impact of higher gold prices while continuing to purchase gold ornaments.

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Gold bars, coins and ETFs also see lower demand

The decline was not limited to jewellery purchases. Investment demand for gold bars, coins and exchange-traded funds (ETFs) also weakened during the quarter.

Demand for gold bars and coins fell by 40 per cent to 55 tonnes in July-September 2026, compared with 91.6 tonnes in the corresponding quarter last year.

Gold ETF demand also declined by 50 per cent. Purchases stood at 5.3 tonnes during the quarter, against 10.7 tonnes in the same period of 2025.

The Reserve Bank of India (RBI) did not purchase any gold during the third quarter of 2026. In comparison, the central bank had purchased 0.2 tonnes during the corresponding quarter last year.

Gold recycling also recorded a decline. The quantity of gold recycled in India fell by 12 per cent to 19.2 tonnes during July-September, compared with 21.8 tonnes a year earlier.

Meanwhile, India's net gold imports declined by 46 per cent to 114.1 tonnes during the quarter, against 211.9 tonnes in the same period last year.

Jain said official bullion imports had fallen sharply, while gold recycling remained subdued. Preliminary estimates also pointed towards an increase in unofficial gold inflows.

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Will festive and wedding season support gold prices?

Despite the recent fall in demand, the WGC expects India's upcoming festive and wedding season to provide support to the domestic gold market.

Jain said improving seasonal buying sentiment and preparations by jewellery retailers ahead of the festive period were encouraging signs.

However, he cautioned that high gold prices could continue to influence how consumers make their purchases.

Buyers may increasingly prefer lighter-weight jewellery and exchange-led purchases to manage their budgets. Such options could help maintain jewellery demand even if the quantity of gold purchased remains lower.

The World Gold Council expects India's total gold demand for 2026 to remain between 625 tonnes and 675 tonnes.

Nevertheless, investors and jewellery buyers will continue to watch international gold prices, crude oil movements and US economic developments. The direction of global markets, along with seasonal buying during the festive and wedding period, will remain important factors for India's bullion market.

(With inputs from agencies)