India’s precious-metals market is witnessing unprecedented highs ahead of the festive season. The gold price and silver price in India have surged dramatically, with 24-carat gold nearing ₹1,34,800 per 10 grams and silver crossing ₹1,70,000 per kilogram, according to industry bodies and market reports. Despite the steep rise, festive demand for gold and silver remains strong as buyers rush in on Dhanteras and Diwali.
Record Rates, Shifting Demand
According to the All India Sarafa Association (AISA), 24-carat gold rose to a record ₹1,34,800 per 10 grams in Delhi on Friday before easing to around ₹1,32,400 per 10 grams. Meanwhile, silver touched levels near ₹1,70,000 per kilogram.
The year-on-year gain is substantial: gold has jumped more than 60 per cent compared with Dhanteras last year, and silver has seen gains of around 70 per cent.
This festively-driven surge comes amid global factors—weakening US dollar, expectations of US interest-rate cuts, and strong central-bank buying—fueling bullion demand. Domestic buyers are also shifting toward coins and bars instead of heavy jewellery, given fabrication costs and elevated rates.
Festive Buying Behaviour and Market Dynamics
Jewellery and bullion traders report that despite record rates, the gold price and silver price in India are not deterring buyers entirely. On Dhanteras and the lead-up to Diwali, demand has remained robust. For instance, in Lucknow the sale of gold coins and silver pieces crossed ₹560 crore, driven by smaller-ticket purchases and coins rather than heavy jewellery.
However, there are signs of volume correction. While value has surged, volume of gold jewellery purchases is down 10-20 per cent, as buyers pivot to lighter items and coins.
In addition, the sharp price rise has triggered a bump in gold smuggling, with authorities reporting thousands of cases and several tonnes of illicit gold intercepted recently.
What This Means for Buyers and Investors
For Gift Buyers and Traditional Purchases
With Dhanteras and Diwali upon us—both considered auspicious for purchasing gold and silver—the high-priced environment means buyers must adapt. Experts advise focusing on coins or lightweight jewellery rather than heavy, high-manufacturing-cost pieces.
For Investors
The rally in the gold price and silver price in India reflects broader macroeconomic trends and may signal continuing upside for bullion, but buyers should be aware of short-term volatility.
For Market and Government
The surge poses challenges for supply chains and regulation. Premiums and smuggling risks are rising, while manufacturers and jewellery retailers are facing substitution effects as consumers shift preferences.
Timing and Rate Strategy
While prices are at record highs, the small dip observed (₹2,400 for gold; ₹7,000 for silver) suggests that minute-to-minute timing might offer marginal relief—but the underlying trend remains bullish.
Expert Commentary and Outlook
Commodity analysts note that the breaking of the ₹1.3 lakh mark for 10 grams of gold represents a psychological barrier being overtaken. According to one strategist:
“Gold continues to benefit from currency weakness, expectations of rate cuts and safe-haven demand. We expect domestic rates to hold in the ₹1.20–1.45 lakh per 10 grams band through 2025.”
At the same time, silver’s relative correction offers a potential opportunity for festival-season shoppers seeking value substitutes. But given the high base, this should not be viewed as a steep bargain.
The shift in consumer behaviour—from heavy jewellery to coins and lightweight items—is likely to persist, especially in a price regime where making charges and design premiums become more visible.
Key Takeaways for the Festival Season
- The gold price and silver price in India are at record highs during Dhanteras and Diwali: 24-carat gold ~₹1.32 lakh per 10 g; silver ~₹1.70 lakh per kg.
- Despite high rates, festive demand remains firm; the consumer mindset is adapting by choosing coins and lighter jewellery.
- Volume of traditional jewellery purchases is down, but value of sales is up—reflecting higher unit rates.
- Investors and buyers should consider timing, premium/making-cost factors, and potential correction versus long-term trends.
- Elevated prices increase systemic risks like smuggling and supply-chain stress, making monitoring by regulators important.
FAQs
A: The gold price in India today for 24-carat gold is approximately ₹1,32,400 per 10 grams, and the silver price is around ₹1,70,000 per kilogram.
A: Prices are being driven by strong festive demand, safe-haven buying, a weak rupee, global interest-rate expectations and central-bank accumulation—leading to a surge in both gold and silver demand.
A: If you’re buying for gifting or investment, consider smaller-ticket items like coins or lightweight jewellery to manage cost. For silver, the recent slight correction may offer comparatively better value, but always check making-charges and purity.
