Gold and silver prices in India may see an increase during the upcoming Dhanteras and Diwali festivities, diverging from the typical trend of post-Navratri price declines. This potential rise is attributed to global economic uncertainty, geopolitical tensions, and sustained purchases by central banks, according to jewellery market representatives.
Recent price data indicates that gold was priced at ₹1,50,700 per 10 grams and silver at ₹2,18,000 per kilogram over the weekend. These prices reflect significant fluctuations throughout the year, following a sharp rally in March. Gold prices started the year at ₹1,37,120 per 10 grams, reaching a peak of ₹1,67,275 in March. Similarly, silver rose from ₹2,38,000 per kilogram in January to ₹2,95,000 in March, with both metals experiencing considerable volatility since then.
Market analysts suggest that concerns about inflation, an economic slowdown, and financial market instability have prompted investors to consider gold as a safe-haven asset. This shift in investor behavior, combined with strong festive demand and developments in international markets, may sustain or elevate bullion prices through Diwali.
Jewellers have noted that the usual pattern of prices peaking around Navratri and declining during Dhanteras might not hold this year. The festive season’s robust demand, intertwined with international market influences, could maintain or even increase bullion prices post-Diwali.
Nevertheless, experts caution that bullion prices remain sensitive to global market conditions, currency fluctuations, and investor demand. Potential buyers are advised to closely monitor price trends before making purchasing decisions to navigate these volatile market conditions effectively.