Gold and silver prices rise on Diwali even after Dhanteras rush; here’s why investors keep buying

Gold and silver prices extended their gains on Diwali Monday as investors continued value buying following last week’s brief correction from record highs.

On the Multi Commodity Exchange (MCX), gold futures for December delivery rose ₹982, or 0.77%, to ₹1,27,990 per 10 grams in a business turnover of 14,913 lots.

The precious metal had surged to a record ₹1,32,294 per 10 grams on Friday before closing at ₹1,27,008 per 10 grams, ending a five-day rally.

The February 2026 contract also advanced ₹1,680, or 1.31%, to ₹1,29,743 per 10 grams in 1,862 lots. It had touched a lifetime high of ₹1,34,024 per 10 grams in the previous trade.

The renewed safe-haven interest amid global uncertainties and expectations of US monetary easing are being seen as major factors behind the continued buying trend.

The December contract for silver, too, jumped ₹1,522, or 0.97%, to ₹1,58,126 per kilogram, while the March 2026 contract rose ₹1,292, or 0.82%, to ₹1,59,361 per kilogram.

The white metal has gained over ₹10,000, or nearly 7%, in the past week, buoyed by industrial demand and supply constraints.

Analysts said the rebound in bullion prices reflects steady safe-haven demand against a backdrop of geopolitical tensions, trade uncertainties, and lingering fears of a prolonged US government shutdown.

“Gold has surged over 65% so far this year, buoyed by a potent mix of central-bank buying, robust ETF inflows, and aggressive positioning on expectations of US monetary easing,” said Riya Singh, Research Analyst – Commodities and Currency, Emkay Global Financial Services.

She added that a weakening US dollar and speculation about a possible outsized rate cut by the Federal Reserve before year-end have further boosted bullion’s appeal.

“Silver, too, has gained substantially, though ETF inflows have begun to plateau, suggesting some near-term fatigue,” Singh said.

Market experts said last week’s correction stemmed from easing fears over US credit conditions and improving trade relations between Washington and Beijing, which briefly tempered safe-haven flows.

“The broader outlook for bullion remains positive. They expect gold and silver to stay supported in the coming weeks on continued geopolitical uncertainty, central bank buying, and expectations of further monetary easing by the US Federal Reserve,” PTI quoted an analyst as saying.