Gold and silver prices fell in early Asian trade on Friday, November 6, following a sharp global equity sell-off. The dip occurred on Dhanteras, a day many use to buy precious metals. Prithviraj Kothari said the previous session's recovery had been supported by a weaker dollar and changes in bond yields.
Gold and silver prices declined in early Asian trade on Friday, November 6, as a sharp sell-off in global equity markets and uncertainty over the US interest-rate outlook weighed on investor sentiment.
The decline comes on Dhanteras, traditionally considered an auspicious occasion for buying precious metals, after both metals had rallied in the previous session.
On COMEX, US gold futures were trading at $4,076 per ounce, down $37.50, or 0.91%, from the previous close of $4,098.50 an ounce. Prices moved between $4,065.30 and $4,116.20 an ounce during the session.
COMEX silver futures fell 1.11% to $51.795 per ounce, down $0.581 from the previous close of $51.725 an ounce. The metal touched an intraday low of $51.260 an ounce.
The weakness follows Thursday's recovery, when international spot gold rose nearly 2% to $4,125.25 per ounce, crossing the $4,100 an ounce mark, while silver gained around 1% to $52.73 an ounce.
Why are gold and silver prices falling?
The latest decline in bullion comes amid a sharp sell-off in global equities. Asian markets tumbled on Friday after Wall Street recorded its steepest decline since the tariff-related market rout in April 2025.
The Nasdaq plunged 5.5% overnight, while the Philadelphia Semiconductor Index slumped 12.2%. In Asia, South Korea's KOSPI fell more than 8% at one point, triggering a circuit breaker, while Japan's Nikkei declined around 6%.
Concerns over the sustainability of investments in artificial intelligence (AI), increased regulatory scrutiny of technology companies and the returns on massive spending on data centres have triggered a reassessment of risk among investors.
The sell-off has also brought safe-haven assets into focus. The US dollar weakened against currencies such as the Japanese yen and Swiss franc, while the yield on the US 10-year Treasury hovered around 4.84%.
However, bullion's immediate direction remains sensitive to interest-rate expectations. Higher interest rates tend to weigh on gold and silver as they increase the opportunity cost of holding non-yielding assets.
US Fed rate outlook remains a key trigger
Expectations around the Federal Reserve's next policy decision remain important for precious metals. Strong US economic data and wage growth could limit the scope for monetary easing, keeping pressure on bullion.
Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Ltd and President of the India Bullion and Jewellers Association (IBJA), said the previous session's recovery in gold and silver had been supported by a weaker dollar and changes in bond yields.
However, he flagged strong US economic data and the fastest wage growth since March 2024 as factors that could keep the Fed hawkish. He also pointed to market expectations of a possible December rate hike.
Kothari sees gold moving towards $4,200 per ounce, equivalent to around ₹1.50 lakh per 10 grams, while silver could test $55 per ounce, or approximately ₹1.97 lakh per 10 grams.
Vikram Kasat, Chief Business Officer – Advisory and Dealing at PL Capital, also cautioned that expectations of a possible US Fed rate hike in December and upcoming US employment data could keep global markets volatile.
Domestic prices remain below January peaks but above last year's levels
In the domestic market, gold prices in New Delhi rose by ₹2,200 to ₹1.48 lakh per 10 grams for 99.9% purity, inclusive of taxes, on Thursday, according to the All India Sarafa Association. Silver gained ₹1,500 to ₹1.94 lakh per kg.
The latest prices remain considerably below the January 29 records. Gold has corrected around 19% from its peak of ₹1.83 lakh per 10 grams, while silver has declined nearly 52% from its record of ₹4.04 lakh per kg.
However, both metals remain more expensive than they were during Dhanteras last year. On October 18, 2025, gold was priced at ₹1.32 lakh per 10 grams and silver at ₹1.70 lakh per kg in Delhi.
How are consumers changing their Dhanteras purchases?
The correction from January's highs has brought some relief to buyers, but elevated year-on-year prices continue to influence purchasing decisions.
Jewellers expect gold and silver sales to rise 20-30% in value terms this Dhanteras, although gold purchase volumes are expected to remain broadly flat compared with last year, according to industry estimates reported by PTI.
Avanish Agarwal, Managing Partner at Sri Jagdamba Pearls, said the sharp rise in gold prices over the past year is changing consumer behaviour.
Citing World Gold Council data, Agarwal noted that India's jewellery demand fell 20% in volume terms during July-September, even as its value increased 16%. This indicates that consumers are spending as much or more while purchasing lower quantities of gold.
He said customers are opting for lightweight jewellery and exchanging old pieces to manage their budgets. Pearls, coloured gemstones and silver were also attracting attention, particularly for gifting.
Amit Kumar, Co-founder and CEO of QWEEN Jewellery, said gold continue to hold a significant place in Dhanteras purchases, but consumers are also exploring natural diamonds, coloured gemstones and distinctive jewellery designs.