As the Dhanteras and Diwali festivals approach, gold and silver prices in India could see an increase, diverging from the typical post-Navratri price decline, according to representatives from the jewellery market. This potential rise in bullion prices is attributed to a combination of global economic uncertainty, geopolitical tensions, and sustained demand from central banks.
Currently, gold is priced at ₹1,50,700 per 10 grams, while silver is at ₹2,18,000 per kilogram. These prices have experienced notable fluctuations over the year, spiking sharply in March before declining. Gold began the year at ₹1,37,120 per 10 grams, reaching a high of ₹1,67,275 in March. Silver saw similar volatility, climbing from ₹2,38,000 per kilogram in January to ₹2,95,000 in March.
Jewellery market insiders suggest that the demand for gold as a safe-haven asset is bolstered by concerns about inflation, economic slowdown, and volatility in financial markets. These factors, coupled with festive demand and developments in international markets, could prevent the usual post-Navratri price dip and possibly drive prices higher after Diwali.
Despite these projections, bullion prices remain susceptible to changes in global market conditions, currency fluctuations, and investor sentiment. Market representatives advise potential buyers to stay informed about price movements before making purchasing decisions.
The traditional pattern of bullion prices peaking around Navratri and then dropping during Dhanteras may not apply this year. The interplay of strong festive demand and broader economic factors could maintain elevated gold and silver prices through the festive season.
