Gold and silver prices in India could see an upswing during the Dhanteras and Diwali festivals, driven by global economic uncertainty and geopolitical tensions. Jewellery market representatives suggest that this year might defy the usual trend of declining prices after Navratri, with strong festive demands potentially sustaining or even elevating the prices further.
As of the weekend, gold was priced at ₹1,50,700 per 10 grams, while silver was at ₹2,18,000 per kilogram. The year has seen significant fluctuations, with gold starting at ₹1,37,120 per 10 grams and spiking to ₹1,67,275 in March, while silver jumped from ₹2,38,000 per kilogram to ₹2,95,000 in the same month. These movements reflect the volatility influenced by various global factors.
Market representatives point to ongoing purchases by central banks and investor concerns about inflation and economic slowdown as factors likely to support bullion prices in the near term. The metals are traditionally viewed as safe-haven assets, encouraging investments during turbulent financial times.
While festive demand usually peaks around Navratri followed by a dip during Dhanteras, this pattern might not apply this year. International market dynamics and strong local demand during the festival season could lead to sustained high prices or even further increases after Diwali.
However, it is crucial for buyers to stay vigilant of global market conditions, currency fluctuations, and investor demand, as these factors can significantly impact bullion prices. Monitoring these variables will be essential for making informed purchasing decisions in this volatile market environment.