Gold and Silver Prices Retreat; Expert Advises Profit Booking
Gold and silver prices declined from record highs reached on Dhanteras, despite strong Diwali demand in India. International gold futures fell over 3%, while silver futures dropped around 6%. This decline is attributed to easing US-China trade tensions. In India, 24-carat gold prices varied across major cities, ranging from Rs 132,560 to Rs 133,161 per 10 grams. Silver prices in India ranged between Rs 167,200 to Rs 167,395 per 1,000 grams. Expert Gautam Shah recommends profit booking in precious metals, favoring equities with projections of Nifty 50 reaching 27,500 in 12 months.
*this image is generated using AI for illustrative purposes only.
Gold and silver prices experienced a decline from their record highs reached on Dhanteras, despite continued strong demand during Diwali celebrations in India. This shift in precious metal prices comes amidst easing trade tensions between the United States and China, and recent expert advice to book profits.
International Market Overview
In the international market, gold and silver futures saw a significant decrease:
- Gold futures: Down over 3%
- Silver futures: Dropped around 6%
The decline is attributed to improving trade relations between the US and China, ahead of a planned meeting between President Trump and President Xi Jinping.
Domestic Indian Market
Despite the festive season demand, gold prices varied across major Indian cities. Here's a breakdown of 24-carat gold prices per 10 grams in key locations:
| City | Price (Rs) |
|---|---|
| Mumbai | 132,991.00 |
| Delhi | 133,089.00 |
| Chennai | 133,161.00 |
| Kolkata | 132,560.00 |
| Bengaluru | 132,924.00 |
| Chandigarh | 132,779.00 |
Silver Prices in India
Silver prices also showed variation across Indian cities, ranging between Rs 167,200.00 to Rs 167,395.00 per 1,000 grams. Notably, silver futures at India's Multi Commodity Exchange declined 10% from Friday's highs.
Expert Analysis
Goldilocks Global Research Founder Gautam Shah recommends aggressive profit booking in gold and silver following their unprecedented price rises. Shah now favors equities over precious metals, projecting:
- Nifty 50 may reach 27,500 over 12 months
- Nifty 50 could hit 28,400 over 18-24 months
- Strong gains expected in mid-cap and small-cap stocks
The retreat in gold and silver prices from their Dhanteras highs, despite strong Diwali demand, suggests that global factors may be currently outweighing domestic consumption patterns.
Recent Performance Comparison
From Diwali to Diwali:
- Silver delivered 60% returns
- Gold provided 56% returns
- S&P 500 gained 17%
- Dow Jones rose 11%
- India's Nifty 50 increased 1.5% in dollar terms
The underperformance of India's Nifty 50 is attributed to a weaker rupee, elevated valuations, and moderated earnings growth.
Investors and consumers may want to keep a close eye on international developments and expert advice as they navigate the precious metals and equity markets in the coming months.
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