Gold Falls Rs 2,400, Silver Drops Rs 7,000 Despite Dhanteras Rush
Gold prices retreated from record highs during Dhanteras shopping, dropping by Rs 2,400 to Rs 1,32,400 per 10 grams in Delhi markets. Silver followed with a Rs 7,000 decline to Rs 1,70,000 per kilogram on Saturday.
Key Takeaways
- Gold fell Rs 2,400 from Friday’s record high of Rs 1,34,800
- Silver dropped Rs 7,000 to Rs 1,70,000 per kg
- Dhanteras sales hit estimated Rs 1 lakh crore nationwide
- Gold sales alone accounted for Rs 60,000 crore, up 25% from last year
Price Correction Details
According to the All India Sarafa Association, 99.9% purity gold had surged by Rs 3,200 to touch an all-time high of Rs 1,34,800 per 10 grams on Friday. The 99.5% purity variant also saw a sharp pullback, depreciating by Rs 2,400 to Rs 1,31,800 per 10 grams.
Despite the recent correction, gold prices have risen Rs 51,000 per 10 grams (62.65%) compared to last Dhanteras. Silver has gained Rs 70,300 (70.51%) from Rs 99,700 per kilogram recorded previously.
Festive Shopping Momentum
Traders attributed the price correction to weak global cues and profit-booking after a steep rally. However, Dhanteras shopping remained robust despite the high prices.
“The festive fervour of Dhanteras upheld its sheen with a robust turnaround by consumers to invest in the yellow metal. Irrespective of the sky-high price of gold, favourable economic conditions and the GST reforms, there has been a tremendous response,” said Colin Shah, Managing Director of Kama Jewelry.
Shah noted significant demand for light-weight jewellery among younger buyers and niche demand for heavy jewellery for the upcoming winter wedding season.
Record Sales Figures
The Confederation of All India Traders (CAIT) reported gold and silver sales accounted for Rs 60,000 crore of total Dhanteras spending, marking a 25% increase from last year.
“The past two days have seen an unprecedented rush in jewellery markets,” said Pankaj Arora, national president of CAIT’s jewellery chapter.
Delhi’s bullion markets alone recorded sales exceeding Rs 10,000 crore.
Global Market Influence
Inderbir Singh Jolly, CEO of PL Wealth Management, noted gold continues to benefit from multiple tailwinds including a weaker dollar, expectations of US Fed rate cuts, and sustained central bank accumulation.
Internationally, spot gold touched a lifetime high of USD 4,379.44 per ounce on Friday before slipping to USD 4,249.98. Spot silver declined to USD 51.90 per ounce after hitting a record of USD 54.49.
N S Ramaswamy of Ventura observed that despite lower quantity, sales value surged 12-18% as consumers adapted to buying design-rich ornaments and lightweight items due to record high prices.
