Gold and Silver Prices Hit Record Highs as Festive Demand Soars Across India

Gold and silver markets in India are witnessing a historic surge, with both precious metals hitting unprecedented highs just ahead of Dhanteras and Diwali. On Tuesday, amid strong festive and wedding season demand, gold prices in Delhi’s bullion market crossed the ₹1.3 lakh per 10 grams mark for the first time ever, while silver soared to ₹1.85 lakh per kilogram.

According to the India Bullion and Jewellers Association (IBJA), 99.9% pure gold jumped by ₹2,850 to touch ₹1,30,800 per 10 grams, up from ₹1,27,950 recorded in the previous session. Similarly, 99.5% purity gold rose to ₹1,30,200 per 10 grams, compared to ₹1,27,350 earlier.

Silver Shines Brighter Than Ever

Silver prices also made a stunning rally. Continuing its upward momentum for the fifth straight day, silver gained ₹6,000 to reach a record ₹1,85,000 per kilogram, up from ₹1,79,000 in the previous session. Experts attribute this surge to strong demand from jewellers and investors, as well as global market trends favoring precious metals.

Why Prices Are Soaring

Market analysts point to multiple factors behind the sharp rise in gold and silver rates. With Dhanteras and the wedding season around the corner, the demand for jewellery has skyrocketed across the country. Retail jewellers are witnessing heavy footfall and advance bookings, particularly in northern cities like Delhi, Jaipur, and Lucknow.

Adding to the domestic demand, the Indian rupee’s weakness has also contributed to the price spike. On Tuesday, the rupee fell by 12 paise to close at its lowest-ever level of ₹88.80 against the US dollar, further pushing the cost of imported gold and silver higher.

Experts believe this combination of festive buying, wedding-related demand, and currency depreciation has created the perfect storm for record-breaking prices.

Global Market Impact

The rally isn’t limited to India alone. In the international bullion market, gold prices also remained strong, hitting new peaks. During the trading session, spot gold touched an all-time high of $4,179.71 per ounce before settling slightly lower at $4,140.34 per ounce.

Meanwhile, spot silver climbed to a record $53.54 per ounce before retreating to $51.36 per ounce. The global upward movement is being driven by expectations of a weaker US dollar, geopolitical tensions, and investor preference for safe-haven assets amid global economic uncertainty.

What Experts Predict Next

Industry experts suggest that if the dollar continues to weaken and the festive shopping momentum persists, gold and silver prices may climb even higher in the coming weeks.

“As long as global cues remain positive and retail demand stays strong during Diwali and the upcoming marriage season, prices could set new benchmarks,” said a senior analyst at a leading commodities firm.

Moreover, with central banks worldwide continuing to buy gold as a reserve asset, the long-term outlook for the precious metal remains bullish.

What This Means for Buyers

For retail consumers, this price surge means that jewellery purchases could become significantly costlier ahead of Diwali. However, for investors, gold and silver continue to serve as reliable hedges against inflation and currency volatility.

Experts advise those planning to buy jewellery for festive or wedding occasions to make purchases sooner rather than later, as prices may rise further before stabilizing post-festival.

The Bottom Line

The record-breaking performance of gold and silver reflects a perfect mix of festive demand, global market trends, and currency movements. With gold now trading above ₹1.3 lakh per 10 grams and silver nearing ₹1.85 lakh per kilogram, India’s bullion market is glittering brighter than ever this festive season.

Whether you’re a buyer, investor, or trader, one thing is clear — the gold rush of 2025 has truly begun.