Gold prices slipped on Dhanteras, with MCX futures trading near Rs 1,42,000 per 10 grams, as global factors overshadowed festive buying. While jewellers expect higher sales value due to elevated prices, volume growth remains stagnant. This development highlights how macroeconomic pressures continue to influence gold valuations despite seasonal demand.
Gold prices witnessed a decline on Friday, November 6, 2026, coinciding with Dhanteras, a day traditionally associated with high demand for precious metals. MCX gold futures for December delivery dipped, trading around Rs 1,42,000 per 10 grams. This price correction occurred despite the festive season, which usually sees a surge in physical buying.
Global Pressures Override Festive Sentiment
The retreat in domestic gold prices is largely linked to international market trends rather than local demand alone. Investors are currently navigating a stronger US dollar and rising bond yields, which often make non-interest-paying assets like gold less attractive to global investors. Additionally, persistent inflation concerns and ongoing global economic uncertainty are keeping precious metal prices volatile. These external factors are acting as a counterbalance to the traditional festive buying interest seen in Indian markets.
Industry Impact: Value vs. Volume
While physical retail demand for gold jewellery persists, industry bodies such as the All India Gem and Jewellery Domestic Council have highlighted a shift in how festive performance is measured this year. Because gold prices are significantly higher compared to last year—up by approximately 10%—jewellers expect to report a 20% to 30% increase in total sales value. However, the actual volume of gold sold—the physical weight of the metal—is expected to remain largely flat. For market participants tracking gold-related stocks, this distinction is important, as headline revenue figures may appear stronger due to price inflation even if underlying consumer volume growth remains stagnant.
The future trajectory of gold prices remains sensitive to macroeconomic factors. The next important monitorable for investors will be US interest rate decisions and global inflation data. These indicators will likely dictate the next phase of price movement, as they continue to exert pressure on gold valuations regardless of seasonal demand.