Gold, Silver Prices Cool After Record Highs; Jewellery Sales Surge 35–40% During Dhanteras

Mumbai — After touching record highs earlier this week, gold and silver prices eased on Tuesday as investors took profits, even as festive jewellery sales during Dhanteras soared by 35–40 per cent across India.

Silver Exchange Traded Funds (ETFs), which had delivered impressive one-year returns of 65–70 per cent, also witnessed a sharp correction amid improving physical supply and reduced safe-haven demand.

Silver had turned red-hot earlier this month when global spot prices surged beyond $40 per ounce due to supply concerns, extending the rally to over $50 in mid-October. However, prices began to retreat late last week as easing trade tensions dampened safe-haven buying.

On October 17, silver prices in the US fell by more than 6 per cent, triggering a correction in Indian markets. According to the India Bullion and Jewellers Association (IBJA), domestic silver prices dropped 7 per cent on October 20, sliding from Rs 1,71,275 per kg to Rs 1,60,100 per kg. The decline directly affected silver ETFs, which track local silver prices.

Data from Ace MF indicated that most silver ETFs recorded single-day losses of up to 7 per cent on October 20. Analysts said the funds are now trading at or below fair value, reflecting cooling investor appetite after months of strong inflows.

Meanwhile, gold prices also softened globally after hitting a record high on Monday. Spot gold slipped 0.3 per cent to $4,340.29 per ounce (as of 0248 GMT), retreating from an all-time peak of $4,381.21, while US gold futures (December delivery) eased 0.1 per cent to $4,356.40 as traders booked profits amid expectations of further US Federal Reserve rate cuts.

Back home, the Multi Commodity Exchange (MCX) is observing special Muhurat trading today, with a pre-open session from 1:30 p.m. to 1:44 p.m., followed by trading between 1:45 p.m. and 2:45 p.m.

Despite the brief correction, festive demand for both precious metals remains robust. The All India Gem & Jewellery Promotion Council (GJC) reported that 50–60 tonnes of jewellery were sold nationwide over the two days of Dhanteras, generating nearly Rs 85 crore in revenue.

While the sales volume was comparable to last year, the value of sales jumped 35–40 per cent due to higher prices and increased consumer enthusiasm.

“Silver has seen exceptional demand this year, with sales nearly doubling during Dhanteras,” the GJC said, noting that the festival coinciding with a weekend and followed by Diwali and Bhau Beej has further boosted buying sentiment.

The Council expects total jewellery sales during the ongoing festive period to reach 100–120 tonnes, valued between Rs 1 lakh crore and Rs 1.35 lakh crore.

With inputs from IANS