Amidst global economic uncertainty and geopolitical tensions, gold and silver prices in India may see an upward trend during the Dhanteras and Diwali festivals, diverging from the usual pattern of post-Navratri price declines. According to representatives from the jewellery market, these factors, along with continued purchases by central banks, could sustain or increase bullion prices in the coming weeks.
Currently, gold is priced at ₹1,50,700 per 10 grams, while silver stands at ₹2,18,000 per kilogram. This follows a year marked by significant price fluctuations. Earlier in March, gold prices peaked at ₹1,67,275 per 10 grams from a starting price of ₹1,37,120 at the beginning of the year. Similarly, silver rose from ₹2,38,000 per kilogram in January to a high of ₹2,95,000 in March.
The traditional trend sees a peak in prices around Navratri, followed by a decline during Dhanteras. However, jewellers suggest that this pattern may not hold this year due to strong festive demand coupled with international market developments. This could result in prices remaining elevated or even increasing after Diwali.
Investors are turning to gold as a safe-haven asset amid concerns about inflation, economic slowdown, and fluctuations in financial markets. Despite this potential for price increases, bullion prices remain sensitive to global market conditions, currency movements, and investor demand.
Market representatives advise that buyers should remain vigilant and monitor price fluctuations closely before making purchasing decisions. This cautious approach is necessary as bullion prices are heavily influenced by external economic and geopolitical factors, which can create volatility in the market.