Gold and Silver Prices Dip Ahead of Diwali as Dhanteras Shoppers Flock to Markets

Gold and Silver Prices Dip Ahead of Diwali as Dhanteras Shoppers Flock to Markets

Gold and silver prices took a breather this Dhanteras after touching record highs a day earlier. According to the All India Sarafa Association, gold of 99.9% purity dropped by Rs 2,400, settling at Rs 1,32,400 per 10 grams, while silver declined by a sharp Rs 7,000 to Rs 1,70,000 per kilogram.

Just a day before, gold prices had hit an all-time high of Rs 1,34,800 per 10 grams, marking an impressive surge in the lead-up to the festive season. Similarly, silver had closed at Rs 1,77,000 per kg on Friday before sliding on Saturday as traders booked profits amid weaker global cues.

Gold Prices Still Shine Year-on-Year

Despite the short-term dip, gold prices have witnessed an enormous year-on-year jump. Compared to Rs 81,400 per 10 grams on Dhanteras 2024 (celebrated on October 29), the price of 24-karat gold has risen by a whopping 62.65%, or Rs 51,000 per 10 grams.

Silver, too, has seen a stellar run, climbing 70.51% in a year—from Rs 99,700 per kg last Dhanteras to this year’s highs of around Rs 1,70,000 per kg.

Festive Shopping Stays Strong Despite Price Surge

While bullion prices eased slightly, the Dhanteras spirit remained undiminished. According to Colin Shah, Managing Director of Kama Jewelry, the festival saw “a robust turnaround by consumers” eager to invest in gold despite sky-high prices.

He noted that demand was especially strong for lightweight jewellery among younger buyers, while heavier pieces saw a pickup due to the upcoming winter wedding season. “Overall, it was a phenomenal response this Dhanteras, with festive demand spiking by 15–18% compared to last year,” Shah added.

Gold’s Cultural and Economic Pull in India

Gold has long held a special place in India’s cultural and spiritual traditions. On Dhanteras — associated with Goddess Lakshmi and prosperity — buying gold and silver is seen as auspicious. Beyond its religious significance, gold remains a symbol of financial security, often viewed as a hedge against inflation and uncertainty.

This year, Indian consumers spent an estimated Rs 1 lakh crore during the Dhanteras festival, driven largely by gold and silver purchases. The Confederation of All India Traders (CAIT) reported that bullion sales alone contributed Rs 60,000 crore of that total — a 25% jump from last year.

“The past two days have seen an unprecedented rush in jewellery markets,” said Pankaj Arora, National President of the All India Jewellers and Goldsmith Federation. In Delhi alone, bullion sales exceeded Rs 10,000 crore, reflecting the sustained demand for precious metals despite record-high prices.

Global Trends Influence Local Prices

Gold and Silver Prices Dip Ahead of Diwali as Dhanteras Shoppers Flock to Markets

On the global front, spot gold reached an all-time high of USD 4,379.44 per ounce on Friday before slipping 1.76% to USD 4,249.98 per ounce as investors took profits. Similarly, silver touched USD 54.49 per ounce before settling at USD 51.90, marking a 4.36% decline.

Inderbir Singh Jolly, CEO of PL Wealth Management, attributed gold’s overall strength to “a weaker dollar, expectations of rate cuts by the US Federal Reserve, and continued central bank buying.”

He also pointed out that Indian buyers are increasingly turning to coins and bars rather than elaborate jewellery due to higher fabrication costs — a trend reflecting gold’s growing appeal as a pure investment asset.

Dhanteras 2025: Record Value, Changing Habits

According to N. S. Ramaswamy, Head of Commodities & CRM at Ventura, festive sales volumes were slightly lower this year (around 25–30 tonnes), but overall value surged by 12–18%, thanks to soaring prices. “Consumers are adapting — opting for design-rich, lightweight ornaments and smaller items like gold coins,” he said.

Even as global volatility drives short-term corrections, India’s deep-rooted affinity for gold and silver remains unwavering. Dhanteras 2025 once again underscored that, for millions of Indians, the allure of gold is not merely about price — it’s about tradition, security, and prosperity.