Gold Price Update: Marginal Dip and Steady Rates Across Indian Cities on November 4

Gold prices in India are witnessing a largely stable to marginally declining trend on Tuesday, November 4, reflecting a consolidation in the market following recent volatility. The yellow metal’s rates across major Indian cities remain relatively steady, influenced primarily by international bullion movements, a strengthening US Dollar, and domestic festive season demand.

Despite a significant correction from its recent peak, the per-gram price of gold shows only a fractional change from the previous day in many major centers. This pause offers investors and consumers a moment of comparative stability after a volatile period marked by global economic signals and shifting investor sentiment.

City-Wise Prices for 24-Carat and 22-Carat Gold

The gold rate for the standard 10-gram unit (without GST, TCS, and other local levies) shows minor variations across major metros, which is typical due to local taxes, transportation costs, and specific market demand.

Note: The rates provided are indicative market prices for 10 grams, sourced from various reputed jewelers and market aggregators. They exclude Goods and Services Tax (GST), Tax Collected at Source (TCS), and other local charges, which vary from state to state and jeweler to jeweler.

Gold’s Decline: What is Driving the Market Trend?

The modest decline in domestic gold prices comes after a period where international and domestic markets saw a significant drop from historic highs, with gold on the Multi Commodity Exchange (MCX) falling substantially from its peak recorded in October.

• Stronger US Dollar: The primary factor pressuring gold globally is the strengthening US Dollar Index (DXY). A robust dollar makes dollar-denominated gold more expensive for holders of other currencies, dampening international demand.
• Fading Rate Cut Hopes: Recent hawkish comments from US Federal Reserve officials, cautioning against a guaranteed interest rate cut in December, have reduced market expectations for further monetary easing this year. Higher interest rates increase the opportunity cost of holding non-yielding assets like gold, reducing its appeal.
• Eased Geopolitical Tensions: The easing of global trade tensions and a calmer geopolitical landscape also reduce the safe-haven appeal of the yellow metal, leading investors to seek higher returns in riskier assets.
• Profit Booking: After gold surged to multi-year highs in October, a natural phase of profit booking by investors has contributed to the recent price correction and stabilization.

Understanding Carat Purity

Gold’s purity is denoted by its ‘carat’ value. Here’s a quick reference for consumers:

• 24-Carat Gold (99.9% Purity): This is the purest form of gold, used mainly for investment purposes (such as gold bars and coins) but is generally too soft for intricate jewelry.
• 22-Carat Gold (91.6% Purity): This is the most common purity level for Indian jewelry, as it blends 91.6% gold with other metals like copper and silver to enhance durability, making it suitable for crafting ornaments.

The current stability offers both investors and consumers an opportunity to consider fresh purchases before the market reacts to the next major global economic or geopolitical developments. Given the ongoing wedding and festive season in India, sustained domestic demand is expected to provide an underlying floor to domestic prices, even as global factors create headwinds.