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

Silver Exchange Traded Funds (ETFs), which had delivered stellar one-year returns of around 65–70 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. On October 17, silver prices in the US fell by over 6 per cent, and the correction soon spilled over into Indian markets.

According to the India Bullion and Jewellers Association (IBJA), silver prices in India fell 7 per cent on October 20, slipping from Rs 1,71,275 per kg to Rs 1,60,100 per kg. The decline directly impacted silver ETFs, which mirror domestic silver prices.

Data from Ace MF shows that silver ETFs logged steep single-day losses, with most funds dropping up to 7 per cent on October 20.

Analysts noted that the ETFs are now trading at or below fair value — a sign that investor demand has started to cool after months of heavy inflows.

Meanwhile, in the international market, gold prices also softened after touching record highs on Monday. Spot gold was down 0.3 per cent at $4,340.29 per ounce as of 0248 GMT, after hitting an all-time high of $4,381.21 in the previous session.

US gold futures for December delivery eased 0.1 per cent to $4,356.40 per ounce, as investors booked profits amid expectations of further interest rate cuts by the US Federal Reserve.

The Multi Commodity Exchange (MCX) will also observe special Muhurat trading today, October 21, with a pre-open session from 1:30 p.m. to 1:44 p.m., followed by the Muhurat trading window from 1:45 p.m. to 2:45 p.m.

Despite the short-term correction, festive demand for gold and silver remains strong. The All India Gem & Jewellery Promotion Council, said that around 50 to 60 tonnes of jewellery were sold nationwide over the two days of Dhanteras, generating nearly Rs 85 crore in sales.

It added that while the sales volume was similar to last year, the overall value grew by 35–40 per cent due to higher prices and rising consumer interest.

“Silver, in particular, has seen a remarkable surge, with sales nearly doubling this season. With Dhanteras coinciding with the weekend and followed by Diwali and Bhau Beej, the five-day festive period is expected to deliver exceptional results,” it mentioned.

“We anticipate total jewellery sales reaching 100 to 120 tonnes, valued between Rs 1 lakh crore and Rs 1.35 lakh crore,” they said.

Whisky negotiations with the US are about “the hard yards” rather than “one-off photo opportunities”, the Prime Minister has said in a rebuke to First Minister John Swinney.

Mr Swinney has made securing a deal to cut whisky tariffs with the US a key part of his premiership in recent months, meeting President Donald Trump on a number of occasions this year in the hopes of reducing the levies.

The First Minister’s involvement in the talks comes despite international trade being a reserved issue, with the UK Government in the lead.

Speaking to a group of Scottish journalists in Downing Street on Monday, Prime Minister Sir Keir Starmer said: “Negotiations and getting the trade deals you want… is about the hard yards of negotiation and that’s what we’ve been up to.

“That’s what we’ve delivered in relation to the India deal and, as you can imagine, we’re continuing those negotiations and hard yards with the US, in particular in relation to whisky.”

He added: “The hard yards is what matters, creating relationships, having the conversations, and these things take time.

“They’re not a one-off photo opportunity.”

Both the Scottish and UK governments are “trying to achieve the same thing” on whisky, the Prime Minister said.

“In the end, I went to Scotland two or three days after the election to say I want to deliver for Scotland above all else and therefore, that’s why we continue these negotiations and discussions with the US and we will continue to do so.”

The First Minister has met with President Trump twice during a visit to his golf courses in the summer, at the State Visit in September and in a private audience at the White House in Washington DC, each time raising the plight of the industry, which claims to be losing £4 million per week due to the US-imposed tariffs.

Speaking to the PA news agency earlier this month, the First Minister said he would like to be involved in the trade talks between the two sides.

“I’ve not been privy to the trade talks,” he said ahead of the SNP’s conference in Aberdeen.

“I would like to be, because I think I’ve actually been quite helpful in all of this.

“It’s clear to me earlier on this year that whisky was not really featuring in the trade talks at all, it was not there as a principal negotiating priority for the UK Government.

“Well, I had to make sure it was, because it really matters to Scotland.”

A spokeswoman for the Scottish Government said: “The First Minister is focussed on securing a zero tariff deal for Scotch whisky, and has raised this matter on a number of occasions with key decision makers, including the President of the United States.

“Further trade negotiations are for the UK Government to take forward.”