Gold, silver prices today: Gold prices fall to Rs 46,700, silver prices at Rs 58,900 despite relief rally in rates in global market

Gold prices dropped marginally on Wednesday in the domestic markets despite commodities seeing a relief rally in the global market. On November 2, the price of 10 grams of 24-carat gold was Rs 50,930. The price of 10 grams of 22-carat gold is Rs 46,700 on average. One kilogram of silver can be purchased for Rs 58,900.  

In the international market despite pre-Fed meeting anxiety, gold prices saw some buying momentum on Tuesday ahead of the Federal Open Market Committee (FOMC) meeting on Wednesday. December gold futures last traded at $1,648.20 an ounce, up 0.46 per cent on the day.

“Commodities witnessed a relief rally on pause in dollar gains though demand concerns prevail as cases in mainland China hit 2,898 on Sunday, topping 2,000 for a second straight day. COMEX Gold prices rose by 0.8 per cent to $1654/oz while Silver prices jumped by 3.5 per cent to $19.8/oz on weaker dollar ahead of the FOMC policy decision,” said Ravindra Rao, Head - Commodity Research for Kotak Securities.

Domestic prices

Gold prices change daily due to excise duty, state taxes, and making charges, which vary from state to state. On Wednesday, 10 grams of 22-carat gold in Mumbai and Kolkata are being bought and sold at Rs 46,540. In Delhi, the same amount of gold can be bought at Rs 46,690 in New Delhi, whereas in Chennai, one can buy it for Rs 47,290.

The prices for 24-carat gold in Mumbai, Kolkata, Delhi, and Chennai are Rs 50,770, Rs 50,770, Rs 50,920, and Rs 51,590, respectively.  

Growth in demand

According to a report World Gold Council, despite price fluctuations and slowdown fears, the gold demand has seen a spike in Q3. It went up by 14 per cent in the July-September quarter in the domestic market mostly due to festive rush. Gold demand (excluding OTC) in Q3 was 28 per cent higher y-o-y at 1,181 trillion. Year-to-date (y-t-d) demand increased by 18 per cent vs the same period in 2021, returning to pre-pandemic levels.

Jewellery consumption reached a robust 523 trillion, increasing 10 per cent y-o-y despite the deteriorating global economic backdrop. However, investment demand saw a dip in Q3 of about 47 per cent showcasing investors’ reluctance due to the stronger dollar.