Gold prices in Delhi recorded a sharp weekly decline, with the rate of 24-carat gold falling by ₹5,643 per 10 grams between November 6 and November 13. Silver prices also weakened, dropping ₹4,868 per kilogram during the same period, as global market pressures and subdued domestic demand weighed on precious metals.
Data from the India Bullion and Jewellers Association (IBJA) showed that Delhi’s 24-carat gold rate declined from ₹1,41,452 per 10 grams on November 6 to ₹1,35,809 on November 13. The fall reflects a broader weakness in bullion markets, with other major cities also experiencing similar price movements.
The decline comes despite continuing geopolitical tensions and concerns over inflation, factors that have traditionally supported demand for gold as a safe-haven asset.
Strong Dollar and Rising Crude Oil Prices Weigh on Gold
Weak international bullion trends have been among the major factors behind the recent correction in domestic gold prices. Rising crude oil prices, persistent inflation concerns and expectations of tighter US monetary policy have added pressure to the market.
A stronger US dollar has further affected precious metals. Since gold is internationally traded in dollars, an appreciating US currency makes it more expensive for buyers using other currencies, potentially reducing demand.
Expectations surrounding the Federal Reserve’s monetary policy have also influenced investor sentiment. Markets are closely watching US inflation figures and their potential impact on the central bank’s December policy decision.
Post-Diwali Demand Loses Momentum
Domestic demand has also weakened following the Diwali buying period. With festive purchases slowing, retail demand has provided less support to gold prices.
The combination of reduced seasonal buying and unfavourable international market signals has contributed to the decline. Silver has followed a similar downward trend, although its price movements are also influenced by industrial demand.
Gold Records Four Consecutive Sessions of Losses
Gold prices declined for four consecutive trading sessions leading up to November 13. The final session brought another substantial correction, with Delhi’s gold rate falling by ₹2,500.
In the international market, spot gold was trading near $3,880 per ounce. Silver also resumed its downward movement after briefly pausing its decline.
Silver generally responds more sharply to changes in industrial demand and investor risk appetite, making its price movements sensitive to developments beyond the traditional safe-haven investment market.
What Could Happen to Gold Prices Next?
Market participants are monitoring key technical levels on the Multi Commodity Exchange (MCX) to assess the next direction for gold.
The immediate support level is placed around ₹1,36,000, while the upside target extends towards ₹1,41,000 if prices manage to recover and sustain momentum.
However, the outlook remains sensitive to international developments. Geopolitical tensions in West Asia, upcoming US inflation data and expectations surrounding the Federal Reserve’s December decision could influence investor demand.
The US Dollar Index, trading near the 103-104 range, is another factor that market participants are watching. Further dollar strength could put additional pressure on gold and silver.
For now, the combination of weaker festive demand, a stronger dollar and uncertain global economic conditions continues to shape the domestic bullion market.
