MUMBAI– Gold and silver prices retreated on Tuesday as investors booked profits following record highs earlier in the week, even as festive jewellery demand soared across India during Dhanteras, with sales jumping 35 to 40 percent.
Silver Exchange Traded Funds (ETFs), which had delivered one-year returns of nearly 70 percent, saw sharp corrections as global prices cooled amid improved physical supply and easing safe-haven demand. After climbing past $50 an ounce in mid-October, silver prices reversed course as trade tensions eased and investor sentiment shifted.
According to the India Bullion and Jewellers Association (IBJA), silver prices in India fell 7 percent on October 20, dropping from Rs 1,71,275 per kg to Rs 1,60,100 per kg. Data from Ace MF showed most silver ETFs declined by up to 7 percent in a single day, reflecting the fall in domestic prices. Analysts said the funds are now trading around or below fair value, signaling a cooling of speculative interest after months of heavy inflows.
Gold also softened after hitting an all-time high on Monday. Spot gold dipped 0.3 percent to $4,340.29 per ounce, while U.S. gold futures for December delivery eased 0.1 percent to $4,356.40 per ounce, as traders took profits and adjusted expectations amid anticipated interest rate cuts by the Federal Reserve.
The Multi Commodity Exchange (MCX) will hold special Muhurat trading sessions on Tuesday, with pre-open trades from 1:30 p.m. to 1:44 p.m., followed by regular Muhurat trading between 1:45 p.m. and 2:45 p.m.
Despite the market correction, festive sentiment remained buoyant. The All India Gem & Jewellery Promotion Council reported that 50 to 60 tonnes of jewellery were sold nationwide over the two days of Dhanteras, generating about Rs 85 crore in sales. While sales volume stayed similar to last year, the overall value rose 35–40 percent due to higher prices and strong consumer demand.
“Silver, in particular, has seen remarkable momentum, with sales nearly doubling this season,” the council said. “With Dhanteras coinciding with the weekend and followed by Diwali and Bhau Beej, the five-day festive period is expected to deliver exceptional results.”
The Council projected total jewellery sales for the festive period to reach 100 to 120 tonnes, valued between Rs 1 lakh crore and Rs 1.35 lakh crore. (Source: IANS)
