Overview
- The sharp fall reported on Oct 31 pushed international spot gold to about $3,875 an ounce and 99.9% purity gold in India to roughly ₹1.42 lakh per 10 grams, while spot silver fell to about $49 an ounce.
- Analysts say rising crude, stronger signals that US rates will remain high, a firmer dollar and soaring bond yields undermined demand for non‑yielding bullion and prompted investors to sell.
- Forced liquidations linked to an equity rout and built speculative short positions amplified the move, with silver hit harder because its price is tied to industrial use in solar panels and electronics.
- Domestic futures reflected steep losses, with MCX gold near ₹1.38 lakh per 10 grams and MCX silver around ₹1.78–1.79 lakh per kilogram, pressuring retail rates and dealer inventories.
- Market watchers expect the near term to hinge on the US midterms, upcoming US jobs and PMI data and eurozone inflation, while festival buying in India and steady central‑bank purchases could partly cushion prices.