Home / Markets / Commodities /  Ahead of Dhanteras, gold rates in India today drop to lowest this month

Gold prices in India today remained in a narrow zone, holding near the lowest level of this month. On MCX, gold futures were flat, trading in the zone between 50,320 per 10 gram and 50,545 per 10 gram. Silver futures were higher at 56,542 per kg. Dhanteras, the festival of wealth and prosperity, will be celebrated on October 23. The price drop ahead of Dhanteras could support retail demand in India, say analysts. 

Demand for gold jewelry, coins and bars typically peaks in India - the world’s second-biggest consumer - over October to December, driven by festivals including Dhanteras and Diwali that starts next week.

Jewelry sales in India nearly doubled in the final quarter last year as consumption revived after two bleak years dominated by the pandemic, according to World Gold Council.

In global markets, gold rose 0.1% to $1,652.23 an ounce, fluctuating between gains and losses. Bullion has had a wild ride this year, tumbling almost 20% since a March peak as the Federal Reserve aggressively tightened monetary policy and a strong dollar. The non-yielding metal, which typically has a negative correlation with the dollar and rates, has been pressured by the stronger greenback. Spot silver rose 0.2% to $18.7181 per ounce.

Concerns over demand from China - the world's biggest consumer of gold - also is weighing on the precious metal as Beijing pursues a Covid Zero strategy.

“ETF holdings that were steady for most of the last week has once again started falling as investors are feeling worried about bullions performance amid Fed’s aggressive monetary policy stance. Although gold is holding $1650/oz level a strong bullish momentum may start only if we see a sustained down move in the American currency. On the price action front last week’s low of $1645.6/oz has become the immediate support and strong support remains near $1622.2/oz. Until the said support holds the bulls might try to push the price higher towards $1680/oz," Kotak Securities said in a note.

“Silver has been getting hit from both gold as well as the industrial metals that have trading been sideways to weak since past few sessions. On the price action front silver seems to have taken support near$18/oz. Until that holds the bulls might try to push the price higher towards the next resistance near $19.21/oz." (With Agency Inputs)




Know your inner investor Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach.
Take the test
Catch all the Commodity News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less

Recommended For You


Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started

Trending Stocks

Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout