Gold and Silver Price (27-31 Oct) : After a tense seven-day slide, gold prices in India finally found their footing this past Saturday, offering a sigh of relief to investors. However, this single day of gains does little to offset a dramatic sell-off witnessed over the preceding week. The price of 24-karat gold plummeted by approximately ₹71,000 per 100 grams, marking one of the most significant weekly drops in recent memory.

This volatility has put investors on high alert, with all eyes now fixed on the upcoming US Federal Reserve meeting for clues on the future direction of precious metal prices.

Weekly Price Snapshot: Gold and Silver

Here’s a quick look at where key precious metal prices stood at the end of the week:

  • 24-karat Gold: ₹12,562 per gram (₹12,56,200 per 100 grams)

  • 22-karat Gold: ₹11,515 per gram

  • 18-karat Gold: ₹9,422 per gram

  • Silver: ₹155 per gram (₹1,55,000 per kilogram)

Silver, which had experienced a phenomenal rally in the first half of the month, also witnessed a sharp correction, aligning with the bearish sentiment in the broader precious metals market.

Expert Outlook: Short-Term Caution vs. Long-Term Confidence

Market experts suggest that while the recent correction is sharp, the long-term story for gold remains intact, though short-term risks persist.

Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA), notes that the dip can be attributed to softer local demand and global financial uncertainty. “For investors looking at gold as a hedge, it remains an option, but the short-term consideration has turned from indiscriminate buying to selective buying,” she stated. Kamboj emphasized that for long-term investors, gold remains a strong investment, especially with the upcoming Indian wedding season likely to boost physical demand.

Echoing the sentiment for caution in the immediate future, Ross Maxwell, Global Strategy Lead at VT Markets, warned of potential for further short-term correction. “A firmer dollar or a rise in real yields could trigger a 5-10% short-term correction,” Maxwell noted. For investors looking to enter the market, he pointed to digital gold platforms and ETFs like SPDR GLD as convenient and liquid options to participate in gold’s long-term potential.

For silver, the outlook is similarly mixed. Kamboj explained that the recent decline is mainly due to profit-taking and weaker industrial demand. “Silver is better at this point as a strategic buffer than a short-term momentum trade,” she added, indicating that the market is currently in a consolidation phase.

Key Factors to Watch This Week

The primary driver for gold and silver prices in the coming days will be the outcome of the US Federal Reserve meeting. Investors will be scrutinizing the central bank’s commentary on interest rate cuts for any signals. A more hawkish stance (suggesting higher-for-longer rates) could pressure gold prices, while a dovish tone (hinting at imminent cuts) could spark the next rally.

Disclaimer: The gold and silver rates mentioned are for informational purposes only and may vary based on location, making charges, and taxes. Please consult with a certified financial advisor before making any investment decisions.

Source – Good Returns