# Gold and Silver Prices Decline Ahead of Karwa Chauth Precious metals drop on MCX amid US interest rate uncertainty and profit-taking. - **Source:** [India News, International News, Today News, News From India, Breaking News, Live News , India's News, About India](https://www.oneindia.com/) - **Published:** 2026-10-29 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/fc212a5a-1a6e-4361-b68d-0783a6081aab ## Sharp Decline in Precious Metals On October 29, ahead of Karwa Chauth, precious metals experienced significant price drops on the Multi Commodity Exchange. Silver futures for December delivery plummeted by Rs 4,600, falling below the Rs 1.90 lakh per kg threshold. Simultaneously, gold futures for December delivery dipped by Rs 700, reaching Rs 1,42,800 per 10 grams. ## US Federal Reserve Policy Impact Although the US Federal Reserve maintained interest rates between 3.75% and 4%, market sentiment remains cautious. Two officials reportedly supported a 0.25 percentage-point increase, fueling speculation about future hikes. Because gold and silver do not yield interest, expectations of higher rates often diminish their appeal compared to interest-bearing savings instruments. ## Global Market Price Movements The downward trend extended to global markets, where gold prices fell by 0.42% to $4,034.45 per ounce. Silver experienced a more aggressive decline, dropping 2.47% to $52.355 per ounce. These international fluctuations directly influence domestic futures contracts, creating a ripple effect that impacts local pricing structures for both investors and retail consumers. ## Dollar Strength and Bond Yields Market participants are closely monitoring the US dollar and bond yields for further direction. A stronger dollar increases the cost of precious metals for buyers using other currencies, potentially dampening demand. Rising bond yields also divert capital away from non-yielding assets like gold, putting sustained pressure on current market valuations. ## Profit Booking and Market Exits Recent price movements follow a strong rally, suggesting that some investors are liquidating positions to book profits. This simultaneous selling pressure often accelerates price declines. Silver, in particular, tends to exhibit higher volatility than gold, leading to sharper swings during periods when investors exit their holdings to secure gains after recent growth. ## Industrial Demand Factors for Silver Silver prices are uniquely sensitive because the metal serves dual roles as an investment asset and an industrial commodity. Beyond jewelry, it is essential for electronics and solar energy production. Concerns regarding industrial consumption or a general reduction in risk appetite can exacerbate price drops, causing silver to fluctuate more significantly than gold. ## Opportunities for Festive Buyers The price dip may attract consumers preparing for the upcoming wedding and festive season. However, analysts caution that this decline does not guarantee a market bottom. Buyers are advised to evaluate their specific budget requirements and consider spreading purchases over time rather than executing large, single-instance transactions during periods of high market volatility. ## Strategic Outlook for Investors Investors should remain vigilant regarding upcoming US inflation data and official signals from the Federal Reserve. Future price stability depends on how these macroeconomic indicators evolve in the coming months. Monitoring the interplay between dollar strength and global demand remains critical for anyone looking to navigate the current precious metal market landscape. ## Sources covering this story - https://www.oneindia.com/business/gold-and-silver-prices-crash-on-eve-of-karwa-chauth-gold-falls-rs-700-silver-drops-rs-4-600-per-kg-8245433.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._