Precious metal markets saw a significant downturn on Tuesday, November 3, 2026, as both gold and silver prices plummeted ahead of the auspicious Dhanteras festival. Silver futures, in particular, suffered a sharp correction, losing nearly ₹4,000 per kilogram in domestic trading. Gold also registered substantial losses, with investor sentiment weighed down by expectations of prolonged higher US interest rates, rising crude oil prices, and renewed geopolitical uncertainty.
International and Domestic Market Overview
On the international COMEX exchange, gold futures were trading at $3,956.60 per ounce, marking a decline of 0.33%, or approximately $13. Silver futures experienced an even steeper fall, dropping 1.14%, or $0.578, to settle at $50.310 per ounce, nearing the critical $50 support level.
Domestic markets mirrored this trend, with significant corrections on the Multi Commodity Exchange (MCX). December gold futures traded at ₹1,38,912 per 10 grams, down ₹1,275 or 0.91%. December silver futures witnessed a more pronounced correction, falling approximately ₹3,950 or 2.15% to ₹1,79,832 per kg.
Factors Driving the Decline in Precious Metals
Several key factors are contributing to the downward pressure on gold and silver prices:
- US Interest Rate Expectations: The prevailing anticipation that the US Federal Reserve will maintain elevated interest rates for an extended period reduces the attractiveness of non-interest-bearing assets like gold and silver.
- Rising Crude Oil Prices: Higher crude oil prices are fueling inflation concerns, which could limit the central bank's scope for interest rate cuts, further impacting precious metal demand.
- Geopolitical Uncertainty: Renewed concerns surrounding the US-Iran conflict and uncertainty ahead of the upcoming US midterm elections are adding to market caution, prompting investors to reassess risk.
Expert Outlook: Key Levels for Investors
According to Amit Gupta, Senior Research Head at Kedia Advisory, international gold is expected to find support at $3,920 per ounce. A sustained hold above this level could see prices move towards $3,960. On MCX, gold could target ₹1,40,000–₹1,41,500 per 10 grams if it maintains above ₹1,38,500.
For international silver, $49.20 remains a crucial support level. If prices sustain above this, they could move towards $50.60–$52. On MCX, silver might target ₹1,84,000–₹1,90,000 if it holds above ₹1,76,000. These levels will be instrumental in determining whether precious metals can recover or face continued volatility.
Disclaimer: This article provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.