Gold and silver prices witnessed a sharp fall as soon as the market opened on Tuesday, November 3, 2026, ahead of Dhanteras and Diwali. Within the first hour of trading, silver became cheaper by more than ₹4,400 per kilogram, while gold also recorded a significant decline. The fall has caught the attention of buyers who were waiting for lower prices during the festive season. However, market experts say investors should consider the reasons behind the decline before making a purchase decision.
Latest Gold and Silver Rates
At around 10 am, December delivery gold on the Multi Commodity Exchange (MCX) was trading at ₹1,38,875 per 10 grams. Its price had fallen by ₹1,386 by that time. December delivery silver was trading at ₹1,79,200 per kilogram, down by more than 2%. Silver had lost ₹4,429 during the session. According to market estimates, domestic gold prices could remain in the range of ₹1,36,500 to ₹1,41,000 over the next few days. This suggests that prices may continue to move up and down in the short term.
Uncertainty Over US Interest Rates
One of the biggest reasons behind the pressure on gold and silver is uncertainty over interest rates in the United States. Investors are waiting for the next move by the US Federal Reserve. There are concerns that the central bank may keep interest rates high for a longer period. Higher interest rates make investments such as bonds more attractive because gold and silver do not offer regular interest income. This can reduce demand for precious metals and put pressure on their prices.
Five Reasons Behind the Price Fall
Several factors are contributing to the decline in gold and silver prices. US government bond yields have moved above 5%, attracting investors towards bonds. Inflation concerns, rising energy prices and tensions involving Iran have also increased uncertainty over future interest rates. A stronger US dollar makes gold and silver more expensive for buyers using other currencies. At the same time, selling in technology and artificial intelligence stocks has forced some investors to raise cash by selling precious metals. Profit booking after gold touched a record high of more than $5,595 per ounce in January has added to the selling pressure.
Experts Expect More Volatility
Satish Dondapati, fund manager at Kotak Mahindra AMC, said international gold prices had fallen around 3% in the past week, reaching nearly a one-year low. He noted that expectations of higher US interest rates had kept pressure on prices. Jatin Trivedi, Vice President and Commodity and Currency Research Analyst at LKP Securities, also expects volatility to continue. He said investors are waiting for clarity on the Federal Reserve's policy. Until that happens, sharp price movements may continue in domestic and international markets.
Is This the Right Time to Buy?
The current fall may look like an opportunity for people planning to buy jewellery or invest in gold and silver. However, experts do not expect a clear upward trend in the immediate future. Gold could remain under pressure if US interest rates stay high and the dollar remains strong. Long-term investors may still consider precious metals important for their portfolios, but buyers should avoid making decisions only because prices have fallen in one trading session. Those purchasing jewellery should also check the latest local rates, making charges and taxes before buying.
