Diwali: Gold, silver prices cool; jewellery sales jump

Gold and silver prices fell Tuesday as investors booked profits after both metals hit record highs in the previous session, even as festive jewellery sales during Dhanteras jumped 35 to 40 per cent across India.

- INDO-ASIAN NEWS SERVICE

Silver Exchange Traded Funds (ETFs), which had delivered stellar one-year returns of around 65 to 70 per cent, also saw a sharp correction as global prices cooled following improved physical supply and easing safe-haven demand.

Silver had turned hot earlier this month when global spot prices surged past $40 an ounce amid concerns of a physical shortage. ‘The rally extended further, crossing $50 in mid-October.

However, by the end of last week, prices began to retreat as easing trade tensions reduced safe-haven demand. October 17, silver prices in the US fell by over 6 per cent, and the correction soon spilled over into Indian markets.