New Delhi, October 20, 2025 — As India approaches the festive season of Diwali and Dhanteras, the prices of gold and silver have dipped slightly after touching record highs earlier this month. Investors, traders, and shoppers are keeping a close eye on market trends as the festival season typically triggers a surge in demand for precious metals.
According to the latest updates, 24-karat gold in Delhi fell by approximately ₹2,400 per 10 grams, while silver saw a decline of around ₹500 per kilogram compared to previous peak levels. Analysts attribute the retreat to a combination of global price corrections, a stronger rupee, and cautious investor sentiment.
“Gold has been trending near record highs for several weeks, but the slight pullback is healthy for the market,” said Rohit Malhotra, Senior Commodities Analyst at ICICI Securities. “This provides an opportunity for festive buyers to make purchases at slightly lower rates, especially ahead of Dhanteras.”
Global Factors Driving Price Movements
International markets have influenced domestic precious metal rates. A softer U.S. dollar index, coupled with a mild decline in global bullion prices, has contributed to India’s gold and silver price adjustments.
“Global demand-supply dynamics are playing a major role,” explained Priya Nair, Head of Metals Research at Kotak Securities. “While central bank buying remains strong, global uncertainty and rising interest rates elsewhere are capping further upward movement.”
Additionally, geopolitical tensions in key gold-producing regions have created volatility, which in turn affects speculative trading in India. Analysts are monitoring the COMEX and London Bullion Market for cues on whether prices may rebound before the peak Diwali buying days.
Domestic Demand Ahead of Diwali and Dhanteras
In India, Diwali and Dhanteras mark the traditional period for purchasing gold and silver, with millions buying ornaments, coins, and bars for investment or gifting purposes. Jewelers across major cities report robust footfall, even as prices slightly soften.
“Customers are asking about rates every 15 minutes,” said Anil Khanna, owner of Khanna Jewellers in Connaught Place, Delhi. “Even though prices dipped a bit, demand remains strong. People prefer to buy before Diwali, so the market is active.”
Mumbai’s Zaveri Bazaar and other major jewelry hubs report similar trends. While high-net-worth investors are eyeing investment-grade coins and bars, festival shoppers are focusing on traditional ornaments and lightweight gold jewelry.
Expert Advice for Buyers
Financial advisors suggest that the current price dip could be a strategic buying window. “If someone is looking to invest in gold or silver this festive season, buying now is prudent,” said Neha Agarwal, a senior wealth advisor. “Markets may stabilize or even rise slightly closer to Diwali, so purchasing at current levels could offer both investment and gifting benefits.”
Investors are also reminded to check purity and certifications, particularly for coins and jewelry, to ensure long-term value retention.
Trends in Silver: A Secondary Festive Choice
Silver, often considered the more affordable alternative to gold, is also seeing active festival-season buying. Retailers report a steady interest in silver coins, utensils, and small bars, often used for gifting during Diwali rituals.
“Silver is especially popular among younger buyers and middle-income households,” noted Ramesh Gupta, a silver trader in Jaipur. “Even with the slight price decline, buyers are optimistic because silver has performed well over the past year.”
Looking Ahead: Market Volatility and Investment Strategies
Analysts warn that gold and silver prices may remain volatile in the short term. Factors such as foreign exchange fluctuations, global interest rate changes, and festival demand spikes could influence rates over the next two weeks.
“While the current dip is modest, global uncertainties remain,” said Malhotra. “Investors should consider buying in tranches rather than making a large lump-sum purchase, to mitigate risk.”
Furthermore, digital gold platforms are seeing increased activity, offering small investors an easier entry point without the need for physical storage.
Conclusion: A Strategic Festive Opportunity
For Indian consumers, the current gold and silver market presents a rare combination: slightly lower prices during peak festival demand. Shoppers and investors alike can leverage this period to purchase ornaments, coins, and bars for both investment and gifting purposes.
“Diwali is not just a festival of lights, it’s also a festival of wealth and prosperity,” said Agarwal. “Buying gold or silver now, at slightly reduced rates, can ensure both tradition and financial prudence.”
With the festival season in full swing, market watchers expect heightened activity over the next 10 days, as families across India finalize purchases in time for Dhanteras and Diwali celebrations.
