Gold and Silver Prices Drop on October 29: Retail Rates in Major Cities

On October 29, gold and silver prices experienced a decline in the Indian market, following the US Federal Reserve's decision to keep benchmark interest rates unchanged. This move was widely anticipated and has implications for the commodities market, particularly for precious metals.

In the international arena, gold prices saw a drop, with spot gold decreasing by 0.5% to $4,039.39 per ounce. Meanwhile, US gold futures for December delivery settled at $4,051.60 per ounce, reflecting a 0.6% decrease. The Fed's decision to maintain interest rates in the 3.75%-4.00% range aims to avoid altering borrowing costs ahead of the upcoming midterm elections in the US, which is a significant factor influencing market dynamics.

In the domestic futures market, MCX gold futures were recorded at ₹1,43,960 per 10 grams, down by 0.030%, while MCX silver futures fell approximately 0.79% to ₹1,93,440 per kg as of 9:13 AM on October 29. The relationship between US interest rates and gold prices is notably inverse; higher interest rates typically increase the opportunity cost of holding gold, a non-yielding asset.

Retail prices for gold and silver vary across major Indian cities. In New Delhi, the price for 24-karat gold is ₹143,530 per 10 grams, while 22-karat gold is priced at ₹131,569 per 10 grams. The rate for silver 999 Fine stands at ₹192,800 per kg. Similar trends are observed in other cities, with Mumbai reporting 24-karat gold at ₹143,780 and Bengaluru at ₹143,890 per 10 grams.

Looking ahead, market analysts will closely monitor the impact of the Federal Reserve's interest rate decisions on gold and silver prices. With the midterm elections approaching, any shifts in economic policy could further influence market trends. Investors are advised to stay informed about these developments as they could affect future pricing in the precious metals market.