On Saturday, 18 October 2025, India celebrated Dhanteras – the most auspicious day for buying gold – and the market reacted with a flurry of price spikes. Narendra Modi, Prime Minister of India posted a festive greeting on X, while traders in Delhi saw 24‑carat gold jump to ₹1,32,953 per 10 grams, a rise of ₹3,350 from the previous day. At the same time, reports from other metros ranged from a record ₹1,34,800 to a dip down to ₹1,27,550, leaving buyers bewildered but eager.
Festive Surge Drives Gold to New Highs
The traditional rush for gold on Dhanteras is a ritual that dates back centuries, but this year the numbers were unprecedented. According to the Indian Bullion & Jewellers Association, morning trades already pushed the benchmark price beyond ₹1,34,000 before the official noon announcement. The surge reflected not only cultural buying but also a broader flight to safety amid lingering geopolitical tensions.
Conflicting Price Reports Across Metro Cities
Media outlets painted a patchwork picture. Hindustan Times quoted Delhi’s 24‑carat rate at ₹1,32,953, while India Bullion noted a brief dip to ₹1,27,550 by 10:50 a.m. In contrast, GoodReturns reported the first price drop in seven days, with 24‑carat gold down ₹1,910 to ₹1,30,860. The national capital’s year‑on‑year jump of nearly 65% – from ₹81,400 in Dhanteras 2024 to over ₹1,34,800 today – was highlighted by The Times of India. Meanwhile, on the MCX, Multi Commodity Exchange (MCX) saw a 3% correction to ₹1,25,957 per 10 grams, hinting at early profit‑taking.
Industry Leaders Weigh In on Demand and Sales Outlook
Rajesh Rokde, Chairman of All India Gem and Jewellery Domestic Council warned that while headline numbers look lofty, “sales volume could shrink by up to 15% compared with last year.” Yet he remains optimistic, projecting a 40‑45% rise in value terms because shoppers are willing to pay premium for the auspicious muhurat. Retail chains echoed the sentiment: Tanishq listed 22‑karat gold at ₹12,210 per gram, and rivals Malabar Gold & Diamonds, Joyalukkas and Kalyan Jewellers quoted ₹11,995 per gram across Mumbai, Bengaluru, Delhi and Ahmedabad.
Investor Sentiment and Global Factors Behind the Rally
Beyond the festive fervor, investors worldwide have bolstered demand. Sachin Sawrikar, Managing Partner of Artha Bharat Investment Managers told GoodReturns that “global uncertainty and robust investor appetite are driving the standout performance of gold and silver.” The Reserve Bank of India has also been a net buyer this quarter, adding a layer of institutional confidence that nudges retail prices higher.
What the Record Prices Mean for Consumers
For ordinary buyers, the headline numbers translate into a heavier wallet. A 10‑gram bar that cost ₹1,30,860 yesterday would set a buyer back over ₹1,35,000 if the upward trend continues. Yet many jewelers, including Tanishq, hinted at “running out” of stock before the muhurat, suggesting that supply constraints could tighten further. Analysts warn that if prices breach the ₹1,40,000 mark, some first‑time buyers may defer purchases, potentially dampening the festive sales boost.
Frequently Asked Questions
How will the record gold prices affect small retailers?
Small jewelers often rely on bulk purchases from larger distributors. With prices hovering above ₹1,30,000 per 10 grams, their cost base rises sharply, forcing many to raise retail rates or limit inventory. Some may shift focus to silver or lower‑karat pieces to stay affordable for local customers.
What drove the sudden dip reported by GoodReturns?
The dip was linked to a brief profit‑taking wave on the MCX after the morning rally. Traders locked in gains, causing a temporary pull‑back of roughly 3 % before the market steadied later in the day.
Is the Reserve Bank of India’s buying likely to continue?
The RBI’s recent purchases are part of its broader foreign‑exchange management strategy. While there’s no public schedule, analysts expect continued buying if global volatility persists, which could keep price pressures alive through the Diwali season.
What does a 40‑45% rise in sales value mean for consumers?
Higher sales value reflects that buyers are spending more per gram, not necessarily buying larger quantities. In practice, many families will still purchase small pieces – like 5‑gram bangles or earrings – but at a steeper per‑gram cost.
When does the Dhanteras muhurat end, and why does it matter?
The muhurat runs from 05:59 PM to 08:25 PM (Pradosh Kaal) and 07:39 PM to 09:41 PM (Vrishabha Kaal) on 18 October, extending into 19 October. Purchases made within this window are believed to bring prosperity, so many buyers rush to finalize transactions, often at the peak price of the day.
