Gold, Silver Prices Crash Ahead Of Dhanteras: Silver Falls Nearly ₹4,000, What Should Investors Watch?

Gold and silver prices witnessed a sharp decline on Tuesday, November 3, ahead of Dhanteras, with silver losing nearly ₹4,000 per kg in domestic markets. Both precious metals remained under pressure as expectations of higher US interest rates for longer, rising crude oil prices and renewed geopolitical uncertainty weighed on investor sentiment.

On the international front, COMEX gold futures traded at $3,956.60 per ounce, declining 0.33% or around $13. Silver futures fell 1.14%, or $0.578, to $50.310 per ounce, slipping closer to the crucial $50 mark.

Domestic prices also recorded significant losses. On the Multi Commodity Exchange (MCX), December gold futures traded at ₹1,38,912 per 10 grams, down ₹1,275 or 0.91%. December silver futures witnessed a sharper correction, falling approximately ₹3,950 or 2.15% to ₹1,79,832 per kg.

Why Are Gold And Silver Prices Falling?

Expectations that the US Federal Reserve could keep interest rates elevated for longer have reduced the appeal of non-interest-bearing assets such as gold and silver. Higher crude oil prices are also fuelling inflation concerns, potentially limiting the scope for interest rate cuts.

Meanwhile, renewed concerns over the US-Iran conflict and uncertainty surrounding the upcoming US midterm elections have added to market caution. Investors are also assessing the political impact of rising energy costs.

Gold And Silver Outlook: Key Levels To Watch

Amit Gupta, Senior Research Head at Kedia Advisory, sees international gold finding support at $3,920 per ounce. A sustained hold above this level could push prices towards $3,960.
On MCX, gold could target ₹1,40,000–₹1,41,500 per 10 grams, provided it holds above ₹1,38,500.

For international silver, $49.20 remains a crucial support. A sustained hold above this level could take prices towards 50.60–52. On MCX, silver could move towards ₹1,84,000–₹1,90,000 if it sustains above ₹1,76,000.

These levels will be crucial in determining whether precious metals can stage a recovery or witness further volatility.