Gold prices and silver prices witnessed a significant correction in October 2026, bringing some relief to buyers ahead of Dhanteras and Diwali. However, the sharp decline has also raised questions about whether precious metals have become attractive buying opportunities or could fall further.
On the Multi Commodity Exchange (MCX), gold futures dropped nearly 7% during October, while silver futures declined by approximately 20%. Silver’s fall was almost three times as steep as gold’s. Both metals have moved considerably lower from their record highs in January 2026.
Although lower prices may encourage festive and wedding-season purchases, market experts recommend caution. They suggest buying in smaller instalments rather than investing the entire amount at once. This approach may help buyers manage the risk of further price fluctuations, particularly in silver.
Gold Prices and Silver Prices Recover on November 2
After facing heavy selling towards the end of October, MCX gold and silver futures recovered on Monday, November 2, as international bullion markets showed signs of stability.
December gold futures traded between approximately ₹1,39,065 and ₹1,39,179 per 10 grams, registering gains of around 0.23% to 0.42% over the previous closing price.
Silver recorded a stronger recovery. MCX silver futures climbed by more than 1.3% to nearly 2%, trading in the range of ₹1,81,611 to ₹1,82,701 per kilogram.
Why Are Gold and Silver Prices Declining?
Gaurav Arora, Head of Research at SAHI, attributed the pressure on gold partly to expectations of higher US interest rates.
The US Federal Reserve maintained its interest rate in the 3.75%–4% range in October. However, two members supported a rate increase, while market participants began considering the possibility of another hike in December.
Higher interest rates generally create challenges for gold because the metal does not offer regular interest income. Consequently, investors may prefer assets that provide better yields.
Rising crude oil prices have also increased inflation concerns. This could encourage central banks to maintain tighter monetary policies, putting additional pressure on precious metals.
Silver has experienced a deeper correction than gold. Besides its investment appeal, silver also depends heavily on industrial consumption. Its wider price movements make it more vulnerable during periods of uncertainty.
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Important Gold and Silver Support Levels
According to Arora, MCX gold futures have remained under pressure over the past month. He identified ₹1,38,250 per 10 grams as an important immediate support level. A sustained break below this level could invite further selling.
For silver, the immediate support stands at approximately ₹1,78,800 per kilogram. Since silver is more volatile, traders and investors should closely monitor price movements around this level.
Arora recommends dividing purchases into two or three instalments around Dhanteras instead of making a single large investment. He also suggests maintaining a smaller silver allocation compared with gold.
Could the Gold Price Correction Become a Buying Opportunity?
Vandana Bharti, Head of Commodity Research at SMC Global Securities, believes that sharp corrections can create opportunities for investors with a long-term investment horizon.
She highlighted previous market corrections when gold prices recovered after liquidity-driven selling.
During the 1970s, gold climbed from below $40 per ounce in 1970 to nearly $850 in January 1980. Similarly, during the 2008 global financial crisis, gold initially declined to around $700 per ounce before reaching approximately $1,917 by August 2011.
Another example came during the COVID-19 market disruption in March 2020. Gold fell to nearly $1,472 per ounce amid widespread selling but subsequently recovered as investors increased their exposure to physical gold and exchange-traded funds.
Bharti believes the recent decline could provide an opportunity for gradual accumulation. She expects Indian gold prices could potentially reach ₹1.65 lakh–₹1.80 lakh per 10 grams by 2027.
Her outlook is supported by factors such as central-bank purchases, currency movements and gold’s traditional role as an inflation hedge. However, this is a market projection, not a guaranteed price target.
What Should Buyers Do This Dhanteras 2026?
Kaveri More, Commodity Technical Analyst at Choice Broking, said the October correction has made gold and silver purchases more affordable ahead of the festive and wedding seasons.
However, she cautioned that falling prices do not necessarily mean the market has reached its bottom. Therefore, buyers should avoid committing their entire investment budget at current levels.
More recommends staggered purchases over the coming weeks or months. Gold continues to receive support from central-bank demand, geopolitical uncertainty and its role in portfolio diversification. Silver, meanwhile, may benefit from industrial demand, although its higher volatility requires careful allocation.
Jewellery Buyers and Investors Should Follow Different Strategies
Consumers purchasing jewellery should focus on the final cost rather than the quoted gold rate alone. Before making a purchase, they should:
- Choose BIS-hallmarked gold jewellery.
- Compare making charges and wastage costs.
- Check the applicable GST.
- Understand the seller’s exchange and buyback policies.
- Obtain a detailed purchase invoice.
Investors looking for exposure to precious metals may also explore gold ETFs or digital silver, depending on their financial goals and risk tolerance.
Final Takeaway
October’s sharp correction has created some relief for gold and silver buyers ahead of Dhanteras and Diwali 2026. Nevertheless, market uncertainty remains, and further price fluctuations cannot be ruled out.
Experts generally favour gradual buying instead of trying to predict the exact market bottom. Gold may offer comparatively greater stability, while silver could provide opportunities alongside higher price risk. Buyers should consider their budgets, investment horizons and risk tolerance before making a decision.
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Also Read: Reliance Share Price Outlook: Can Strong Q2 Results Push the Stock to ₹1,265?
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Bazaarbulletin. We advise investors to check with certified experts before making any investment decisions.
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