Overview
- Domestic markets on Oct. 31 recorded sharp losses, with gold down about ₹3,200 to ₹1,42,000 per 10 grams and silver down about ₹4,200 to ₹1,86,000 per kilogram, according to the All India Sarafa Association.
- Overseas spot markets also fell hard, with spot gold near $3,875 an ounce and spot silver around $49 an ounce after single‑session drops of roughly 4% and 6% respectively.
- Futures and trading mechanics amplified the move as MCX gold futures slid several thousand rupees per 10 grams and MCX silver futures plunged by large amounts per kilogram, driven partly by forced liquidations and speculative positioning.
- Analysts say the sell‑off was triggered by rising crude oil, which lifted inflation worries, and renewed expectations of higher US interest rates that raised real yields and the cost of holding non‑interest‑bearing metals.
- Near term direction will depend on US midterm results and key economic data such as payrolls, unemployment and PMI, while Indian festival/wedding demand and continued central bank purchases could provide price support and limit further declines.