Gold Price Jumps Rs 2,200 Ahead of Dhanteras in Delhi

Gold and Silver Prices extended their festive-season rally in Delhi on Thursday, November 5, as jewellers, retailers and investors increased purchases ahead of Dhanteras and Diwali. Gold Prices rose by Rs 2,200 per 10 grams, while silver gained Rs 1,500 per kg, supported by stronger domestic demand and a recovery in international bullion prices.

According to the All India Sarafa Association, 99.9% purity gold climbed to Rs 1,48,800 per 10 grams, inclusive of all taxes, compared with Rs 1,46,600 in the previous session. Silver prices increased to Rs 1,94,500 per kg from Rs 1,93,000.

Key Highlights

• Gold prices in Delhi increased Rs 2,200 to Rs 1,48,800 per 10 grams.
• Silver gained Rs 1,500 to reach Rs 1,94,500 per kg.
• Festive buying ahead of Dhanteras and Diwali supported domestic bullion demand.
• International spot gold climbed nearly 2% to around $4,125 per ounce.
• Investors are watching US economic data, crude oil prices and Federal Reserve signals for further direction.

Gold and Silver Prices Rise Ahead of Dhanteras

Gold prices recorded gains for the second consecutive day in the national capital as demand picked up ahead of Dhanteras. The occasion is considered auspicious for purchasing precious metals, with many households buying gold and silver as part of their festive traditions.

Retailers, jewellers and stockists increased their purchases in anticipation of higher festive-season demand. Investment buying also contributed to the positive momentum in the Bullion Market.

Silver followed gold higher, gaining Rs 1,500 per kg. The rise in both precious metals reflects the combination of seasonal buying and improving international market prices.

How Much Have Gold and Silver Prices Increased Since Last Dhanteras?

Precious metal prices are significantly higher than they were during the previous Dhanteras. On October 18 last year, gold was priced at Rs 1,32,400 per 10 grams, while silver traded at Rs 1.7 lakh per kg.

Gold has gained approximately 13% since then, with domestic prices moving in the Rs 1.40 lakh to Rs 1.48 lakh range, according to Dhruv Joglekar, Assistant Fund Manager at Monarch PMS.

The strong performance has made precious metals an important focus for investors during a volatile year. However, higher prices also mean consumers may need to spend more to purchase the same quantity of gold or silver compared with the previous festive season.

Global Gold Prices Cross $4,100 per Ounce

International bullion markets also supported domestic price gains. Spot gold climbed by $65.12, or nearly 2%, to approximately $4,125.25 per ounce, moving above the $4,100 level. Silver advanced around 1% to $52.73 per ounce.

Market experts linked the rise in gold prices partly to falling crude oil prices and changing expectations about geopolitical developments. Lower oil prices can ease inflation concerns and influence expectations about future interest rate decisions.

Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, said gold moved towards $4,127 per ounce as crude prices declined amid speculation that the United States could seek an early resolution to the Iran conflict.

US Midterm Election Outcome and Iran Conflict Influence Bullion

Developments in the United States have also influenced investor sentiment. Vice President JD Vance attributed the Republican Party’s poor performance in the midterm elections partly to the Iran conflict, raising expectations that the Trump administration could explore a possible agreement with Tehran.

Expectations of easing geopolitical tensions and concerns about the financial burden of the conflict weighed on crude oil prices. The decline in energy prices helped support bullion by easing some inflation-related concerns.

Kaynat Chainwala, AVP, Commodity Research at Kotak Neo, said gold had advanced above $4,140 per ounce, while silver moved closer to $53. She attributed the gains to weaker crude oil prices and pressure on the US dollar and Treasury yields following the election outcome.

Weaker Dollar and Lower Bond Yields Support Gold

Gold does not generate interest income, making its relative attractiveness sensitive to changes in interest rates and bond yields. When borrowing costs and yields decline, investors may find non-yielding assets such as gold more attractive.

The previous trading session had already delivered a strong rally. Gold gained more than 3% to close above $4,060 per ounce, while silver surged 5% to around $52.20.

An over 8% decline in crude oil prices eased inflation concerns and reduced expectations of further Federal Reserve tightening. The US dollar also fell to a one-month low, providing additional support to internationally traded precious metals.

Silver Outperforms Gold During the Recovery

Silver has recorded stronger gains than gold during the recent rebound. However, its industrial applications make it more sensitive to changes in economic growth expectations.

Unlike gold, which is primarily valued as a precious metal and investment asset, silver also has significant industrial demand. This means concerns about manufacturing activity and broader economic conditions can influence its price movements.

As a result, silver may experience sharper price movements when investor sentiment or industrial demand expectations change.

US Jobs Report and Federal Reserve Policy Remain Key Market Triggers

Investors are now watching the US jobs report due on Friday for clues about the direction of monetary policy. A stronger-than-expected labour market reading could strengthen expectations of higher interest rates, potentially limiting further gains in gold and silver.

On the other hand, weaker employment data could support bullion prices if it increases expectations of lower borrowing costs. The Federal Reserve’s policy signals will remain important because interest rate expectations influence the dollar, bond yields and demand for precious metals.

Gold and Silver Price Outlook: What Could Happen Next?

Crude oil prices and developments in US-Iran diplomacy are also expected to influence the near-term direction of bullion. Continued weakness in crude prices and bond yields could provide further support to gold and silver.

According to Chainwala, favourable market conditions could push gold towards $4,220 per ounce and silver towards $54.50 per ounce. However, a recovery in energy prices or hawkish signals from the Federal Reserve could slow the rebound.

For Indian consumers, the festive-season rally means gold and silver purchases are becoming more expensive compared with last year. For investors, the next major signals will come from US economic data, interest rate expectations, currency movements and geopolitical developments.