Gold, silver rebound sharply ahead of Dhanteras, Diwali. What should investors do? Check city-wise rates

Those preparing to buy gold and silver ahead of festivals have faced a major setback as prices have rebounded sharply after correcting over the past few days. Both metals have recovered strongly. In just two days, silver has become about Rs 14,400 per kg more expensive, while gold has also jumped by Rs 7,770 per 10 grams. This rise has increased the worries of buyers planning to buy gold and silver jewellery for the festivals.

According to Multi Commodity Exchange (MCX) data, gold was Rs 1,38,000 per 10 grams on November 3 and rose to Rs 1,45,770 per 10 grams on November 5.  This means that gold became costlier by Rs 7,770 in just two days. Silver has seen an even bigger increase. The price of one kilogram of silver was Rs 1,76,000 on November 3 and rose to Rs 1,90,400 on November 5. Therefore, silver became Rs 14,400 costlier per kilogram in just two days. Meanwhile, gold prices in the international market reached around USD 4,140 per ounce. 

Why did gold and silver prices suddenly start increasing?

Following the Democrats’ landslide victory in the US midterm elections, the dollar weakened. This weaker dollar supported gold in international markets, pushing prices higher. A sharp decline in Brent crude oil prices is also affecting current market conditions. The decline in crude oil prices has alleviated investor concerns about inflation and global economic uncertainties. In this environment, gold and silver demand and prices are receiving support.

What should investors do?

According to experts, investors should take a more thoughtful approach to their investments and avoid rash reactions. 

“While festive sentiment may give rise to investment opportunities, it is equally important to have an assessment of valuations, experiment with diversified portfolios and exercise restraint against making rash investments due to hype in the market. Investors should maintain discipline in their investment approach and connect their investments with their financial goals,” said Mukesh Pandey, Founder & MD, Rupyaapaisa.

24K and 22K gold prices in major cities across the country