Gold rate in India: Gold prices continued to decline over the week, whereas silver dipped to its all-time low levels in the year. The sharp downfall in gold price came as a sharp rise in crude oil prices complicated the inflation outlook. Meanwhile, Gold Multi Commodity Exchange (MCX) Futures, with December expiry saw 2.5% weekly decline.
The recent decline in gold prices came as rising energy prices and persistent inflation concerns reaffirmed the belief that US interest rates will remain elevated for longer. For Indians, the decline in precious metals’ rates has offered an attractive opportunity to invest in gold and silver, especially ahead of Diwali and Dhanteras celebrations.
Gold prices are likely to remain volatile and the current correction has helped provide some respite to those who were planning to make purchases during the festive season.
However, stronger movement in dollar, rising bond yields and interest rate expectations can restrict the immediate rise in prices, highlighted Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara Pvt. Ltd, adding that increased demand for the festive season and weddings can offer support to domestic gold prices.
“In the long term, the outlook is positive based on the buying activity of central banks and the safety aspect that gold offers. Consumers have the chance to buy gold during Diwali instead of waiting for a big fall in price. Investors should think of staggered buying and not buying at one price level,” explained Maurya.