Business News
3 min read | Updated on October 16, 2025, 17:25 IST
SUMMARY
Dhanteras 2025: While jewellery demand has eased, bullion purchases, particularly gold and silver bars and coins, are soaring.
Women look at gold jewellery ahead of the festivities, in Surat, Tuesday, Oct. 14, 2025. (PTI Photo)
Millions of Indians are preparing to buy gold and silver ahead of Dhanteras, the first day of the Diwali festival, even as record prices threaten to dampen festive enthusiasm.
Gold prices surged by ₹1,185 on Thursday to an all-time high of ₹1,28,395 per 10 grams in domestic futures trade, tracking a global rally that lifted the metal above USD 4,250 per ounce.
Expectations of interest rate cuts by the US Federal Reserve and geopolitical tensions have boosted safe-haven demand for the metal.
On the Multi Commodity Exchange (MCX), gold futures for December delivery rose 0.93% to ₹1,28,395 per 10 grams, while silver futures gained ₹2,454, or 1.51%, to hit a record ₹1,64,660 per kilogram.
Despite the sharp rise in prices, retailers said festive demand for precious metals has not slowed down, although buying patterns have shifted toward bullion rather than jewellery.
“Gold prices are increasing every day, and people are looking at this and coming in to invest,” said Vrishank Jain, owner of Umedlal Tilokchand Zaveri Jewellers in Mumbai’s Zaveri Bazaar. “Demand for jewellery has slowed, but people are buying gold bars and coins. We are seeing a lot of demand for gold and silver bars in this festive season and ahead of the wedding season.”
"Many buyers are locking in current prices through advance booking or buying gold coins, as they expect a further surge in gold and silver prices in the coming days," he told PTI Videos.
Consumers often see gold as a long-term investment, and it also has deep cultural significance in India, as buying gold during festivals like Dhanteras and on occasions like weddings is considered auspicious.
“Buying gold during Diwali is considered auspicious, and it is an investment,” PTI quoted Devras Bhai Parmar, a customer at Zaveri Bazaar, as saying. “In times of emergency we can get cash in exchange for gold....It has been a tradition in my family to buy gold during every Diwali.”
Kumar Jain, spokesperson for the Indian Bullion Jewellers Association, said customers were increasingly opting for bullion over ornaments.
“People who have weddings are coming in to recycle their old gold, and there is no slow-down in demand,” he said. “The US trade war, increase in stamp duty, Ukraine-Russia and Middle East tensions....all this has contributed to the surge in gold prices.”
Sharmila, another customer at Zaveri Bazaar, said she would purchase gold, albeit in smaller quantities.
“I also want to teach my kids about the tradition of buying gold on auspicious occasions, and how it is an investment for the future,” she added.
India is one of the world’s largest consumers of gold, and demand typically peaks during Diwali and the subsequent wedding season, when buying gold is seen as a sign of prosperity.
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