Gold buyers in Delhi got a small breather on Friday, though not the kind anyone was celebrating. Prices of the yellow metal fell for a fourth straight session, slipping Rs 2,500 to Rs 1,40,900 per 10 grams in the national capital as demand stayed weak after Diwali and global cues turned soft. Silver followed the same path, shedding Rs 3,500 to Rs 1,84,000 per kg.
The slide has been steady rather than dramatic. A day earlier, on Thursday, gold had closed at Rs 1,43,400 per 10 grams. Friday’s drop took the metal to its lowest level in weeks, and traders say the mood in Delhi’s bullion markets is cautious, with buyers waiting to see whether prices settle here or slide further.
What happened in Delhi’s bullion market
According to the All India Sarafa Association, 99.9 per cent pure gold fell Rs 2,500 on Friday to Rs 1,40,900 per 10 grams, inclusive of all taxes. The 99.5 per cent purity variety also eased in line with the broader market.
Silver, which had held steady in the previous session, resumed its decline. The white metal lost Rs 3,500 to close at Rs 1,84,000 per kg, down from Rs 1,87,500 a kg on Thursday.
The numbers tell a clear story. In four sessions, gold has given back a sizeable chunk of the gains it built up during the festive season, when prices had climbed sharply on strong Diwali buying. Now that the festival rush is over, footfall at jewellery shops has thinned and the market is running largely on global cues.
Why gold prices are falling
Two forces are pulling prices down at the same time, and both were visible on Friday.
First, domestic demand has cooled. The wedding and festival season buying that pushed prices higher in October has faded, and jewellers report fewer walk-in buyers. Wit/h Diwali over, the usual post-festival lull has set in, and that alone is enough to soften prices in a market as sentiment-driven as bullion.
Second, global markets are weak. Gold has been under pressure internationally after a sharp sell-off earlier in the week. Traders are also watching the US Producer Price Index data for clues on inflation and the Federal Reserve’s next move on interest rates, and that uncertainty has kept many investors on the sidelines.
- Festive demand is over: Post-Diwali buying has slowed sharply, leaving jewellers with thin footfall.
- Global weakness: International gold slipped below the psychologically important $4,000 an ounce mark during the week.
- Strong dollar and rate worries: Expectations around US monetary policy are keeping bullion under pressure.
- Profit booking: After a strong run-up in October, some investors are locking in gains.
What global markets did
In international markets, spot gold recovered some ground on Friday, rising $27.21, or about 1 per cent, to $3,904.87 an ounce. The recovery came a day after the metal had plunged 3 per cent to settle at $3,877.52, slipping below the $4,000 mark for the first time in weeks.
The bounce, however, was not enough to lift sentiment in India, where the rupee’s weakness against the dollar has kept imported gold expensive even as global prices ease. India imports almost all the gold it consumes, so the exchange rate matters as much as the international price.
Trade data released on Friday underlined how sharply the gold trade has changed. Gold imports fell 62 per cent year-on-year to $5.51 billion in October, down from $14.71 billion a year earlier, even though imports nearly tripled from September’s $1.8 billion as festive stocking kicked in. Silver imports were down 28 per cent year-on-year at $1.91 billion in October.
What it means for buyers
For households planning a purchase, the four-day slide is a mixed signal. Prices are clearly off their recent highs, which makes this a better entry point than a few weeks ago. But bullion traders caution that the metal is still trading near historically high levels, and a single day’s fall does not make it cheap.
Anyone buying jewellery should remember that the quoted rate is only part of the final bill. Making charges, wastage and 3 per cent GST sit on top of the metal price, so the price on a shop’s board and the price on the invoice are never the same. Checking rates across two or three jewellers before buying remains the simplest way to avoid overpaying.
Investors tracking gold as an asset will be watching two things next week: the US inflation data and the direction of the dollar. If global prices stabilise above $3,900 an ounce, Delhi rates could find a floor near current levels. If the selling resumes, the slide could extend into a fifth session.
FAQs
What is the gold price in Delhi today?
Gold (99.9 per cent pure) closed at Rs 1,40,900 per 10 grams in Delhi on Friday, November 13, after falling Rs 2,500 in a single session, according to the All India Sarafa Association.
Why is gold falling after Diwali?
Festive demand has faded after Diwali, global gold prices have weakened below $4,000 an ounce, and uncertainty over US interest rates is keeping investors cautious.
What is the silver price in Delhi?
Silver fell Rs 3,500 on Friday to Rs 1,84,000 per kg in Delhi, down from Rs 1,87,500 per kg on Thursday.
Is this a good time to buy gold?
Prices are off their recent highs, which helps buyers. But gold is still near historically high levels, so comparing rates across jewellers and checking making charges matters more than timing a single day’s dip.
What should investors watch next?
US inflation data, the dollar’s direction and global spot gold’s ability to hold above $3,900 an ounce will decide whether the slide continues into next week.
For now, the message from Delhi’s bullion market is simple: the festive rush is over, and gold is giving back some of its gains. Whether that turns into a deeper correction or a brief pause will be decided by global markets in the days ahead.
