Gold prices fall for the third consecutive week: ₹670 less this week; Silver price fell by ₹850 to ₹1,48,275 kg

So far this year, the price of gold has increased by Rs 43,938. The price of silver has also increased by Rs 62,258 during this period.

There was a decline in the prices of gold and silver this week. According to India Bullion and Jewelers Association (IBJA), on October 31, gold was at ₹ 1,20,770 per 10 grams, which fell by ₹ 670 to ₹ 1,20,100 by November 7. This is the third consecutive week when the price of gold has fallen. On October 17, gold was at ₹1,29,584 per 10 grams.

Same is the situation with silver also. On the last trading day of last week (31 October), the price of 1 kg silver was Rs 1,49,125, which has come down by Rs 850 to Rs 1,48,275 per kg by the last trading day of this week i.e. 7 November.

Due to fall in the prices of gold and silver

• End of seasonal buying in India: After festivals like Diwali, the process of purchasing gold and silver stopped in India. Due to this the demand for gold and silver has decreased.
• Reduction in global tension: Gold and silver are considered ‘safe-haven’, that is, people buy them in difficult times. It has declined due to reduction in global tension.
• Profit-Taking and Overbought Signals: Investors are booking profits after the rally. Technical indicators such as the Relative Strength Index (RSI) were showing that prices had reached the overbought zone. Therefore, trend followers and dealers have started selling.

This year gold became costlier by ₹ 43,938 and silver by ₹ 62,258

• So far this year, the price of gold has increased by Rs 43,938. On December 31, 2024, 10 grams of 24 carat gold was worth Rs 76,162, which has now become Rs 1,20,100.
• The price of silver has also increased by Rs 62,258 during this period. On December 31, 2024, the price of one kg silver was Rs 86,017, which has now become Rs 1,48,275 per kg.

See the price of gold in different cities of the country in the map…

4 reasons for different prices of gold in cities

1. Transportation expenses: Gold is a physical thing, so it costs money to transport it. Most imports are made by air. Then the gold has to be transported to the interior areas. Transportation expenses include fuel, security, vehicle, staff money etc.
2. Gold purchase quantity: The demand for gold varies according to the city and state. South India accounts for about 40% of India’s total gold consumption. Here sellers buy gold in bulk which reduces the prices. Whereas prices are higher in tier-2 cities.
3. Local Jewelery Association: For example, the gold rate in Tamil Nadu is decided by the Jewelers and Diamond Traders Association. Similarly, there are many other associations across the country which decide the prices.
4. Purchase Price of Gold: This is the biggest factor that affects gold rates in different cities. Jewelers who have bought the stock cheaply can charge lower rates.

Keep these 2 things in mind while buying gold

1. Buy only certified gold: Always buy certified gold bearing the hallmark of Bureau of Indian Standards (BIS). This number can be alphanumeric i.e. something like this – AZ4524. Hallmarking shows how many carats the gold is.
2. Price Cross Check: Cross-check the correct weight of gold and its price on the day of purchase from multiple sources (such as the website of India Bullion and Jewelers Association). The price of gold varies according to 24 carat, 22 carat and 18 carat.

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