MCX gold rebounds Rs 600 a 10 grams as bullion shakes off October’s 7% slump

MCX gold rates bounced on November 2, with December gold futures up about Rs 600 per 10 grams at roughly ₹1.39 lakh and silver futures jumping sharply as traders priced bullion for Dhanteras and Diwali. The rebound came after a brutal October in which MCX gold fell about 7% and silver collapsed about 20%.

The Economic Times reported that gold futures gained Rs 613 to ₹1,39,098 per 10g, while December silver futures rose Rs 2,800 to ₹1,81,925 per kg. Live Mint’s updated feed showed MCX gold at ₹1,39,112 and silver at ₹1,81,999, with the Nifty above 23,300. Both feeds agree on the shape of the move: a festive-session reversal after an ugly month.

Why MCX gold rebounded on November 2

Buying was tied to the Diwali window. Multiple reports described gold and silver futures opening higher on the Multi Commodity Exchange ahead of the festival, with silver the bigger gainer on the day. For instance, December silver futures rose Rs 2,800 to ₹1,81,925 per kg on the ET tally, a large single-session move after October’s roughly 20% drop in silver. MCX gold rates recovered much less dramatically, but still erased part of the month-long damage.

Cities did not move in lockstep. India Infoline’s November 2 city list had Chennai at the top for 24-karat gold at ₹1,39,460 per 10g and Kolkata at the bottom at ₹1,38,810. That is a ₹650 spread between the two quoted city rates. Silver rates also varied across cities, though the reports did not give a complete city-wise silver table.

What the October sell-off looked like

The turn matters because the starting point was weak. Livemint and Mint on MSN both carried the same message: MCX gold futures were down about 7% in October and silver down about 20% before rebounding on November 2. ET’s treatment framed the same reversal as gold futures rising Rs 600/10 grams and silver jumping Rs 3,000/kg ahead of Diwali while rate-hike bets lingered.

That combination helps explain trader caution. A 7% fall in gold and a 20% fall in silver in the same month is not a normal festive build-up. The November 2 prices, then, are a bounce off a cheaper base rather than proof that the correction is over.

Who is affected by these prices

The immediate audience is festive buyers and futures traders. Hindustan Times noted that while 24-karat gold is the highest purity, 22-karat gold remains widely preferred for jewellery manufacturing, which means the Dhanteras-Diwali season is as much about ornaments as about investment demand. For consumers, lower MCX rates after October may improve the entry level for planned purchases; Livemint’s analysts said lower prices may suit planned festive purchases but warned against treating the dip as a simple all-clear.

City-level pricing also matters for who pays what. A Chennai buyer quoted ₹1,39,460 for 10g of 24-karat gold on November 2, while a Kolkata buyer saw ₹1,38,810. Buyers travelling across cities, or comparing jeweller quotes against MCX futures, were therefore not paying a single India-wide price even on the same day.

What is still weighing on bullion?

The same reports carry an explicit counterweight: persistent US inflation and expectations of a Federal Reserve rate hike threaten bullion’s appeal. ET said US inflation and rate-hike bets were still lingering even as MCX prices rose ahead of Diwali. Live Mint also connected the November 2 session to the US midterm elections, another source of global risk sentiment moving through commodity prices.

Internationally, India TV News gave a mixed read: COMEX gold fell 0.28% to about USD 4,040.3 per troy ounce, while the spot gold price at 2 pm was USD 4,031.14 per ounce, up USD 7.93. The domestic MCX gold rates rose anyway, which suggests the festive flow was strong enough to offset softer international cues.

The open question after Diwali is whether US inflation prints and the Federal Reserve’s rate path keep pulling bullion back down, or whether festival demand holds the gains.