Gold and Silver Prices Experience Volatility Amid Festive Demand in India

Gold and silver prices experienced noticeable fluctuations across major metropolitan areas in India as consumers and investors navigated the peak festive purchasing period. Retail rates for 22-carat and 24-carat gold varied across major cities, with local jewelers reporting steady interest ahead of key festivals such as Dhanteras and Diwali.

According to market data from late October 2026, 22-carat gold jewelry prices hovered around ₹13,085 to ₹13,235 per gram depending on the city and brand, while 24-carat gold saw rates stretching higher. The Indian Bullion and Jewellers Association (IBJA) reported indicative rates for fine gold (999 purity) at ₹14,129 per gram, alongside silver (999 purity) priced at ₹1,95,050 per kilogram.

On the Multi Commodity Exchange (MCX), gold futures for December delivery recorded an increase of ₹817, reaching ₹1,42,841 per 10 grams. Market analysts attributed this upward movement on the commodities exchange to fresh speculative positions and firm spot demand from buyers looking to secure physical holdings during the auspicious season.

The domestic price movements followed a turbulent global week for precious metals. Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd. and President of the IBJA, noted that global spot gold fell 4 percent to $3,995 and silver dropped 5.4 percent to $53.90 internationally. According to Kothari, the broader global sell-off was driven by oil market pressures, interest rate expectations, and forced selling rather than domestic factors.

Geopolitical tensions in West Asia also contributed to the macroeconomic climate surrounding the bullion markets. Houthi attacks on infrastructure in Saudi Arabia pushed Brent crude oil prices above $116 per barrel, which financial markets interpreted as inflationary. Consequently, expectations for a December rate hike rose to 78 percent ahead of a scheduled Federal Reserve decision.

Despite international market corrections, domestic analysts expect strong seasonal demand from Indian consumers, supported by central bank purchasing and inflows into exchange-traded funds (ETFs), to provide a cushion against deeper price dips. Industry experts have advised buyers to consider staggered purchasing strategies near current support levels as the festive shopping period continues.