After a record-breaking surge in prices, both gold and silver witnessed a major correction on Saturday in Delhi markets. Gold prices slipped by ₹2,400 to ₹1,32,400 per 10 grams, while silver fell by ₹7,000 to ₹1,70,000 per kilogram, even as millions of Indians flocked to jewellery stores to celebrate Dhanteras — the traditional day for buying gold and silver.

Prices Retreat After Historic Highs

According to the All India Sarafa Association, gold of 99.9 percent purity had hit an all-time high of ₹1,34,800 per 10 grams a day earlier before easing to ₹1,32,400. Similarly, gold of 99.5 percent purity dropped to ₹1,31,800 per 10 grams after peaking at ₹1,34,200.

Silver prices also extended their losses for a second straight session, falling to ₹1,70,000 per kilogram after soaring to ₹1,77,000 earlier in the week. Despite the short-term correction, gold prices have risen more than 62 percent year-on-year, jumping from ₹81,400 per 10 grams during Dhanteras 2024 to ₹1,32,400 this year — a massive gain of ₹51,000 per 10 grams.

Festive Demand Remains Strong

Even with soaring prices, festive buying remained robust across India. Dhanteras, which marks the beginning of the Diwali season, is considered highly auspicious for buying precious metals. According to leading traders’ associations, Indian consumers spent over ₹1 lakh crore during Dhanteras 2025 on gold, silver, vehicles, utensils, electronics, and apparel.

Colin Shah, Managing Director of Kama Jewelry, said, “The festive fervour of Dhanteras upheld its sheen this year. Consumers showed tremendous enthusiasm despite high gold prices. Younger buyers leaned toward lightweight jewellery, while bullion sales remained buoyant across major cities.”

He added that demand for heavy gold jewellery also spiked ahead of the winter wedding season as buyers aimed to secure rates before further price increases. “Overall, it was a phenomenal response this Dhanteras with a festive sales rise of around 15 to 18 percent compared to last year,” he noted.

The Cultural Pull Of Gold

Gold continues to hold immense cultural and emotional significance in India. The metal symbolizes wealth, prosperity, and divine blessings, especially during Dhanteras, which is associated with Goddess Lakshmi. Its role as both an investment and a cultural tradition keeps demand resilient, even in times of high inflation or price volatility.

While the current dip offers short-term relief to buyers, analysts suggest that global uncertainties, inflation fears, and geopolitical tensions could keep gold prices elevated in the months ahead.

 

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