Gold and silver prices on the Multi Commodity Exchange (MCX) dropped on Friday, November 6, 2026, as investors weighed inflation concerns and the outlook for US interest rates. MCX December gold futures fell 1.45% to ₹1.42 lakh per 10 grams, while December silver futures declined 1.65% to ₹1.84 lakh per kg. Despite the price correction, jewellers anticipate strong festive purchases on Dhanteras, a traditionally auspicious day for buying precious metals.
The decline in domestic prices comes amid a global trend, with spot gold falling 0.6% to $4,063.39 per ounce. The metal, however, remained on track for a weekly gain of around 4%. Rising crude oil prices have reignited inflation fears, strengthening expectations that the US Federal Reserve may maintain higher interest rates for longer. Higher interest rates typically weigh on gold, as it does not offer interest income.
Investors are also awaiting the US non-farm payrolls report, which could influence expectations around the Fed's December policy decision. Silver, more volatile and exposed to industrial demand, is facing profit-taking after a recent rally. Despite the correction from January highs, jewellers expect gold and silver sales to rise 20-30% in value terms compared to last year, though volumes are likely to remain flat.
According to the All India Gem and Jewellery Domestic Council (GJC), the timing of Dhanteras at the beginning of the month could support purchases as consumers have their salaries in hand. Families with upcoming weddings may also advance their purchases following the price correction. Experts suggest that gold should be viewed as a strategic allocation alongside equities, with a potential portfolio allocation of 30-40% depending on risk appetite.