Gold Prices Dip in India Amid Global Cues and Festive Season Demand

Gold prices in India continued their downward trend on Tuesday, with 24-karat gold (99.9% purity) falling ₹160 per 10 grams from Monday’s level. According to data from Goodreturns.in, 24K gold was priced at ₹14,902 per gram in most cities, while 22-karat (91.6% purity) gold was at ₹13,660 per gram, and 18-karat gold was at ₹11,177 per gram. The decline in 24K gold represents a 0.11% drop, with similar decreases observed in 22K and 18K gold.

The fall in gold prices is attributed to global cues and the dollar-rupee exchange rate, which influence India’s bullion rates. The broader equity market showed a slight gain, with the Nifty 50 trading around 22,650, up 0.43%. The USDINR futures contract expiring on October 28 was quoted near ₹96.61. The decline in gold prices was consistent across major cities, with Delhi maintaining the highest rates due to a ₹15 premium over the Mumbai cluster for 24K and 22K gold. The 18K market showed less uniformity, with Chennai’s rates standing out due to a narrowed premium.

Jewellery stocks witnessed a mixed trend in late-morning trade, reflecting the broader market’s performance. Thangamayil Jewellery emerged as the top gainer, while Titan Company and PC Jeweller traded in the red. Despite the decline in gold prices, jewellers expect the festive season to drive demand, with potential savings for larger purchases. For example, a 100-gram purchase of 24K gold would result in savings of ₹1,600 compared to Monday’s rates.

As the festive season approaches, including Navratri, Dussehra, Dhanteras, and Diwali, jewellers anticipate increased demand. The mild decline in gold prices at the beginning of the week is expected to influence purchasing decisions, particularly for wedding-related purchases. Investors looking to buy gold without worrying about storage or purity may consider gold ETFs, which track gold prices without requiring physical ownership.