Gold, Silver Bounce Back: MCX Gold Rises Past Rs 1.39 Lakh, Silver Surges Over Rs 3,500 On Festive Demand

Gold and silver rates inched slightly higher on Monday, November 2, after a sharp debacle last week. MCX Gold, December 4 expiry, rose Rs 694 to an early high of Rs 1,39,179 per 10 grams from the previous close of Rs 1,38,485. MCX Silver, December expiry, escalated over Rs 3,500 to a high of Rs 1,82,701 per kilogram as compared to the last close of Rs 1,79,132.

Analysts attributed the uptick in the precious metals price to a sharp decline in crude oil prices and demand in the festive season. 

"MCX gold prices declined around 3–4% over the past week, with the recent low recorded at 138249. However, prices witnessed some relief at Monday’s opening, supported by a nearly 3% decline in crude oil prices and festive-season demand," said  Kaveri More, Commodity Technical Analyst at Choice Broking. 

Meanwhile, the US Dollar Index (DXY) is trading around $101.9, while USD/INR is hovering near 95.2, providing an important currency backdrop for domestic bullion prices, the analyst noted. 

Will Festive Buying Bring A Relief To Bullion Market? 

The analyst believes that festive demand ahead of Dhanteras and Diwali could offer some near-term support to gold prices. 

"Despite the recent correction, festive buying interest and a softer crude oil market could offer some near-term support. However, the overall trend will depend on movements in the dollar, crude oil prices and expectations surrounding the Federal Reserve’s interest-rate outlook," More noted. 

24k, 22k Gold Rates In India

24 karat gold rate on November 2 in India is Rs 1,39,430 per 10 grams, while 22 karat gold rate in India is Rs 1,27,811 per 10 grams. 

At the same time, the 20-karat gold rate today is Rs 1,16,192 per 10 grams, while the 18-karat gold rate today is Rs 1,04,573 per 10 grams.