Gold Rate in India Sees Sharp Fall! Will Gold Rate Decline Further on Guru Nanak Jayanti? 5 Nov Outlook

Gold Rate in India: Gold prices in India extended their decline on Tuesday, November 5, with 24K, 22K, and 18K gold witnessing another sharp drop. The correction has sparked expectations of further consolidation in the coming weeks as volatility grips the precious metal market. Silver prices also slipped, reflecting the broader weakness in bullion. Investors will now keep a close watch on gold price trends on Wednesday, November 6, for cues on the next possible move.

Gold rate in India has witnessed a stellar rally since the beginning of the year 2025 amid heightened geopolitical uncertainty and stock market volatility. The price of gold jumped around 60% since the beginning of the year 2025; similarly, silver prices have also surged around 65% year to date.

Gold Rate in India

The price of 24 karat gold in India declined by around 71 per gram to Rs 12,246 per gram on Tuesday. Whereas, the rate of 22 karat gold in India surged, falling from around Rs 65 per gram to Rs 11,225 per gram. The price of 18 karat gold in India dropped by Rs 54 per gram to Rs 9,184. The recent price correction in gold prices over the past two weeks has come amid a record-breaking surge in the prices of gold over the past two to three months.

Silver Rate in India

The price of silver in India declined on Tuesday. Silver prices fell to Rs 151 per gram and to Rs 1,51,000 per kilogram. The sharp surge in silver prices is the result of a strong industrial demand and supply-side constraints. Despite the decline in precious metals' prices, investors are bullish on their long-term growth.

Gold, Silver MCX Rates

Gold and silver futures on the multicommodity exchange (MCX) declined on Tuesday. Gold futures with December expiry declined and closed at Rs 119797 per 10 grams, whereas silver futures with December expiry declined and closed at Rs 145484 per kilogram. In the international markets, gold prices fell below $ 4,000 per ounce on Tuesday. The decline in gold prices came amid falling expectations of another US Fed rate cut in December.

Gold, Silver Price Outlook

The price of gold may remain volatile on Wednesday, November 5. As investors await the US economic data and closely track the US tariff hearings, gold prices may decline further on Wednesday.

Additionally, multiple international developments may further support gold price correction in coming days. "China's factory activity in October also expanded at a slower pace as new orders and output waned owing to tariff anxiety. Meanwhile, China ended a long-standing tax exemption policy for some gold retailers, potentially setting back a gold buying spree in the world's biggest consumer market," said Manav Modi, Analyst, Precious Metal -Research, Motilal Oswal Financial Services Ltd.

The recent decline in gold prices could be the result of firmer dollar and receding safe-haven demand, according to Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA) and Executive Chairperson, Aspect Global Ventures.

"Gold remains a preferred hedge against inflation and geopolitical risk; yet, the current downward nudging could indicate that buyers might be adopting a wait-and-watch approach in search of further clarity on global monetary policy ahead. In this context, gold is not losing its appeal, but the momentum has cooled and this calls for a more cautious posture among both retail and institutional investors," explained Kamboj.

For silver, Kamboj added, "Unlike gold, silver seems to regain its lost momentum, as investors see this marginal rise as indicative of fundamental underlying strength in industrial demand. The marginal rise also reflects the dual character of the metal as a hedge and an input metal, making it more responsive to both investment flows and manufacturing-linked buying. The rise may be modest, but it testifies to the fact that silver remains in focus in India's precious-metals space, particularly when portfolio diversification gains greater importance."