Gold with 99.5% purity followed a similar trend and fell to Rs 1,31,800 per 10 gram, while silver fell by Rs 7,000 to Rs 1,70,000 per kilogram, extending losses for the second day in a row.
On Sunday, the rate of 24-carat gold will fall further to around Rs 1,30,860 per 10 grams.
Despite the correction, gold remains one of the best performing assets of 2025. Prices have risen 62.6% year-on-year, rising to over Rs 51,000 per 10 grams since the last Dhanteras. Silver has also risen 70% in a year, underscoring the remarkable strength of precious metals amid global economic uncertainty.
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Dhanteras Rush keeps the festive spirit high
The price drop failed to deter shoppers as buyers thronged jewelers across cities to celebrate Dhanteras – the auspicious day that marks the start of Diwali festivities.
The Confederation of All India Traders (CAIT) estimated that sales of gold and silver crossed Rs 60,000 crore, contributing to the total festive expenditure of Rs 1 lakh crore this weekend.
From a cultural perspective, gold remains deeply intertwined with Indian traditions. Associated with Goddess Lakshmi, it symbolizes wealth, purity and prosperity. Buying gold on Dhanteras is believed to bring good luck – a sentiment that continues to drive demand despite record prices.
What drives the Bullion Rally?
Analysts attribute the price correction to profit booking after a steep rally in global markets. Spot gold hit a record high of $4,379.44 an ounce on Friday before falling to $4,249.98 as traders booked profits.
“Globally, gold’s rally is being fueled by a weak dollar, expectations of US interest rate cuts and massive central bank buying. Domestically, premiums have risen to 10-year levels as investors increasingly prefer coins and bars to jewelry,” said Inderbir Singh Jolly, CEO of PL Wealth Management.
Outlook: Gold is expected to remain stable through 2025
According to a recent report by ICICI Bank Global Markets, the domestic gold price is expected to fluctuate between Rs 1,20,000 and Rs 1,35,000 per 10 gram for the rest of 2025, possibly rising to Rs 1,45,000 by early 2026.
The bank expects global gold prices to remain elevated due to continued investor demand, while a weaker rupee – forecast between 87 and 89 per USD – could further support local prices.
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