Gold soars ₹3,200 to record high of ₹1,34,800/10 gm on festive buying ahead of Dhanteras, silver falls ₹7,000; check gold outlook

Gold prices (99.9% purity, 24K) in Delhi on Friday, October 17, soared ₹3,200 to a fresh all-time high of ₹1,34,800 per 10 gram, supported by strong festive buying by jewellers and retailers ahead of Dhanteras, according to the All India Sarafa Association. The yellow metal of 99.5% purity also jumped to a fresh peak of ₹1,34,200 per 10 gram. 

Silver, surprisingly, moved in the opposite direction to fall by ₹7,000 to ₹1,77,000 per kg, down from the previous close of ₹1,84,000 per kg on Thursday. 

Globally, spot gold eased by 0.52% to $4,303.73 per ounce on Friday after hitting a record high of $4,379.29 per ounce in the previous session.

Spot silver declined by 1.32% to $53.43 per ounce after surging to a fresh lifetime high of $54.48 per ounce during the session on Friday. 

"Despite the dip, the overall sentiment for gold remains constructive, driven by expectations of monetary easing by the US Federal Reserve, geopolitical uncertainties, and central bank buying," a PTI report quoted analysts as saying. 

According to experts, the minor correction in global prices was likely a short-term adjustment following the recent sharp rally. Overall, the prolonged US-China trade standoff is a key driver behind the surge in bullion trade. 

"The rally drew additional fuel after United States (US) regional banking stress headlines grabbed investors' attention and stoked risk aversion, with the ongoing US government shutdown further dampening market sentiment," the PTI report quoted an expert as saying.

Futures contracts

Rising to new lifetime highs, gold futures for the December expiry rose by 1.8% (₹2,442) to ₹1,32,294 per 10 gram on the Multi-Commodity Exchange (MCX) on Friday after closing at ₹1,29,852 per 10 gram in the previous session. 

Silver futures, in line with gold contracts, rose to a fresh peak as well. The white metal contracts for the December delivery jumped 1.6% (₹2,752) to ₹1,70,415 per kg on the MCX after closing at ₹1,67,663 per kg on Thursday. 

Gold outlook

Gold’s bull run is expected to continue, and prices could rise up to $4,500 per ounce in the international markets on the back of sustained central bank gold buying, persistent geopolitical tensions and strong Asian demand, another PTI report said, quoting a financial services firm. 

Silver, which has surpassed gold’s returns so far in 2025, is forecasted to climb to nearly $75 per ounce, driven by rising industrial demand for the white metal and a widening supply deficit, the report said. 

With Diwali fast approaching, India's gold demand is expected to remain robust. Gold seems to be reclaiming its position as a key reserve asset in a shifting global financial landscape, the report noted.

Gold reserves held by India have crossed $100 billion in value, rising by $3.595 billion during the week ended October 10 to $102.365 billion, the RBI said on Friday. This is at a time when the country’s forex reserves dropped by $2.176 billion to $697.784 billion during the said week. 

Central banks around the world are increasing their gold reserves to diversify assets away from the US dollar due to economic and geopolitical instability and hedge against inflation. 

The demand for gold, and thus its prices, rises during uncertain situations. Increasing geopolitical turmoil, rising trade war concerns, heavy central bank gold buying, weak currencies and market fluctuations have been driving gold prices in domestic and international markets. 

Festive demand in India is boosting the yellow metal further, as gold is more than just an investment for the country with great traditional and cultural value. Dhanteras, on October 18, is an auspicious occasion to buy precious metals. The upcoming festivals are expected to boost these metals in the coming days. 

Even the wedding season, which will come between November and February, could drive the demand and prices for gold and silver, as these precious metals are crucial in marriage ceremonies in India. 

As the countdown to the festival of lights begins, the bullion market is seeing more customers at silver jewellery shops than at outlets selling gold ornaments, according to a PTI report recently.

Silver rises with the help of gold, but the white metal’s prices are also being supported by the demand-supply mismatch in the markets amid silver’s increased use in sectors like 5G, solar and EV. 

While gold has given over 60% returns this year, silver has risen by nearly 90%, breaking all records. 

Bullion market trader Ratan Jain told PTI, "People are attracted by the rise in silver prices over the past year. Obviously, the expectation of good returns is driving the increase in silver investment."

"Despite the rise in silver prices, demand is increasing. Currently, it is difficult to find silver even at a price of ₹20,000 above the prevailing wholesale rate. The situation is such that if we make a deal to buy silver today, it will be delivered to us after 15 days,” said another bullion market trader, Jinendra Dungarwal.