Gold Prices Dip Ahead of Festive Season Amid Fed Rate Speculation

Gold prices have taken a notable dip ahead of the Dussehra-Diwali shopping season, providing some relief to potential buyers despite expectations of strong festive demand for precious metals. The price of 24-carat gold has dropped by approximately ₹3,500 per 10 grams this week, while 22-carat gold has seen a decline of nearly ₹3,200 per 10 grams. Silver has also experienced a price decrease, with the metal falling by ₹5,000 per kilogram on October 1, driven by weaker industrial demand.

The market's movements are heavily influenced by the anticipated decision from the US Federal Reserve on October 28. Bullion traders are closely monitoring the central bank's monetary policy meeting, as changes in interest-rate expectations could significantly impact gold prices. Investors have been booking profits following a recent rise in bullion prices, particularly as the probability of a US rate hike has dropped from nearly 70% to around 22% due to softer-than-expected inflation data.

As of the latest quoted rates, gold prices vary slightly across major cities. For instance, in Delhi, 24-carat gold is priced at ₹1,49,330 per 10 grams, while in Mumbai, it is slightly lower at ₹1,49,180 per 10 grams. Similar variations can be observed for 22-carat and 18-carat gold across other cities. These differences can be attributed to local taxes, making charges, and other factors.