Indian gold and silver markets experienced a drop in prices on October 29, affecting 24-carat, 22-carat, and 18-carat purities. This downward movement is largely attributed to the US Federal Reserve's decision to hold interest rates steady, a move that typically makes non-yielding assets like gold less attractive to investors. Global economic risks and rising geopolitical tensions in West Asia also contribute to market watchfulness.
Market Overview and Key Rates
Benchmark gold rates settled at ₹1,44,150 per 10 grams, while silver continued its retreat from the ₹2-lakh mark, trading at ₹1,93,800 per kilogram. On the Multi Commodity Exchange (MCX), gold futures saw a marginal increase of 0.03% to ₹1,43,752 per 10 grams. In contrast, silver futures were down by 0.55%, trading at approximately ₹1,93,264 per kilogram at the time of reporting.
Prices in India are significantly influenced by international spot bullion trends, the dynamics of the USD/INR currency exchange rate, and anticipatory retail demand, especially ahead of the upcoming festival shopping season.
Understanding Gold Purity and Retail Dynamics
In the physical retail market, 24-karat gold represents pure gold, while 22-karat gold, which is mixed with alloys, remains the preferred choice for crafting durable ornaments. Retail gold purchases in India are subject to a standard 3% Goods and Services Tax (GST) on the metal's value, plus an additional 5% GST on jewellery making charges. Import duties and local transport surcharges also contribute to regional price variations across different states.
City-Wise Gold and Silver Rates (October 29)
- Delhi: 24K Gold ₹1,43,570/10gm, 22K Gold ₹1,31,606/10gm; Silver ₹1,93,120/kg
- Mumbai: 24K Gold ₹1,43,820/10gm, 22K Gold ₹1,31,835/10gm; Silver ₹1,93,450/kg
- Kolkata: 24K Gold ₹1,43,630/10gm, 22K Gold ₹1,31,661/10gm; Silver ₹1,93,200/kg
- Chennai: 24K Gold ₹1,44,240/10gm, 22K Gold ₹1,32,220/10gm; Silver ₹1,94,020/kg
- Hyderabad: 24K Gold ₹1,44,050/10gm, 22K Gold ₹1,32,046/10gm; Silver ₹1,93,760/kg
- Bengaluru: 24K Gold ₹1,43,940/10gm, 22K Gold ₹1,31,945/10gm; Silver ₹1,93,610/kg
Major Jewellers' Rates
Leading retail chains generally kept prices stable on October 29. Joyalukkas and Malabar Gold & Diamonds quoted 22K gold at ₹13,195 per gram across most states. Tanishq listed its 22K gold rate at ₹13,245 per gram. For 24-carat gold, Malabar quoted ₹14,395 per gram, while Tanishq stood at ₹14,449 per gram.
Minor disparities in retail rates among brands can arise from store-level pricing structures, inventory acquisition costs, and regional logistics, even as global commodity trends dictate the overall market direction.