Major surge in gold and silver prices ahead of Dhanteras, impacting buyers' budgets

A strong rally has been observed in the precious metals market ahead of the upcoming festivals of Dhanteras and Diwali. Dhanteras will be celebrated on 6 November and Diwali on 8 November, which has increased the special significance of gold and silver purchases in India. Prices have reached new heights due to increased local demand during this festive season and corrections in the international market.

According to a report by ABP Asmita, prices of 99.9% pure gold in Delhi's bullion market have surged by ₹4,800, bringing the price to ₹1,46,600 per 10 grams. On Tuesday, this price was ₹1,41,800. Similarly, silver prices have seen a major increase of ₹9,000 per kilogram, reaching ₹1.93 lakh, compared to ₹1.84 lakh on Tuesday. The All India Saraf Association has confirmed these figures.

As per a report by TV9 Gujarati, gold prices have increased for four consecutive days following a one-day stability. During this period, 24-carat gold increased by ₹770 per 10 grams and 22-carat gold increased by ₹710 per 10 grams. However, prior to this increase, 24-carat gold had declined by ₹5,090 and 22-carat by ₹4,650 over two consecutive days. Prices vary across different cities. In Delhi, Lucknow, and Jaipur, 24-carat gold is ₹1,39,800, 22-carat is ₹1,28,160, and 18-carat is ₹1,04,890. In Mumbai, Kolkata, Bengaluru, Chennai, and Hyderabad, 24-carat is ₹1,39,650, 22-carat is ₹1,28,010, and 18-carat is ₹1,04,740. In Ahmedabad and Patna, 24-carat is recorded at ₹1,39,700, 22-carat at ₹1,28,060, and 18-carat at ₹1,04,790.

According to TV9, a decline has been seen in silver prices, where one kilogram of silver is approximately ₹1,99,900 in Delhi, Mumbai, Chennai, and Kolkata. Previously, between 29 and 31 October, silver prices had seen a major decline of ₹20,000. On the other hand, according to the Aaj Tak report, gold futures on MCX rose by more than ₹3,000 and silver futures by more than ₹6,000. For December futures, silver is at ₹1,85,719 per kg and gold is at ₹1,42,423 per 10 grams.

Speaking on the reasons for the price hike, Soumil Gandhi, Senior Analyst at HDFC Securities, stated that a strong recovery in international markets and local festive demand are responsible. According to Aaj Tak, international demand has increased as the US Dollar Index fell by 0.3% to 101.52. Additionally, a decline in the US 10-year bond yield and increased uncertainty in the market due to the US midterm election results have led investors to view gold as a safe option. Tensions between the US and Iran have also supported this demand.

In the global market, spot gold has risen by 3% to reach $4043.93 per ounce, while silver is trading at $52.03 per ounce, up 4.5%. According to Vandana Bharti of SMC Global Securities, it is necessary for COMEX gold to remain at the $4,000 level, which could take prices to $4,200. Gold on MCX is moving towards ₹1,42,000.

According to Rajeev Sharan, Research Head at Brickwork Ratings, gold prices fell by 8% from their peak in October because the US dollar strengthened and hopes for interest rate cuts by the Federal Reserve weakened. He further stated that last year on Dhanteras, gold became 65% more expensive on an annual basis, whereas this year it has increased by only 5 to 7%. According to the World Gold Council, India's gold demand could hit a six-year low in 2026.

According to News18, Dhanteras will be celebrated on 6 November 2026, a day when the worship of Yamdeepdan will hold special significance. There is a tradition of lighting a lamp for Yamraj on this day.