Gold prices in India have fallen about 7 per cent from their August highs ahead of Dhanteras. The IBJA benchmark for 999 gold stood at Rs 1,48,138 per 10 grams on October 1. It was up slightly from Rs 1,47,667 on September 29.

Global spot gold traded near 4,216 dollars an ounce on October 2. September was punishing for gold worldwide. The spot price fell 8.5 per cent in the month.

Rising US Treasury yields hurt the metal. The 10-year yield touched about 5.35 per cent, its highest in nearly 24 years. Gold pays no interest, so higher bond yields raise its holding cost.

Indian buyers felt less of the fall. The rupee weakened to 96.31 per dollar on October 1, a two-month low. A cheaper rupee lifts the landed cost of imports and cushioned the drop.

Gold imports slumped 58 per cent year on year to 2.3 billion dollars in August. The import duty stands at 15 per cent since May. Jewellers now watch festive demand.

Dhanteras buying will test whether lower prices revive retail interest.