Gold, silver prices correct ahead of Dhanteras: Will lower rates lift demand - CNBC TV18

AI desk brief

Gold and silver extended their decline ahead of Dhanteras as a stronger US dollar, rising bond yields and expectations of further Federal Reserve tightening pressured prices. On MCX, December gold fell 1.65% to ₹1.37 lakh/10 grams and December silver dropped 4.47% to ₹1.75 lakh/kg, with analysts flagging continued volatility into the December Fed meeting.

The price correction may improve festive buying, but jewellery demand remains constrained by affordability and rupee weakness. One jeweller said consumers are shifting toward lighter 9K-19K studded jewellery, while an online platform reported gold jewellery demand at 2.5x a regular day and gold coins/pendants at 3x, with Tier 2/3 buyer participation rising over 40% YoY.