As Indians gear up for Dhanteras — the festival considered most auspicious for buying gold and silver — bullion markets witnessed a dramatic fall in prices. On Thursday, gold slipped by ₹2,400 per 10 grams while silver plunged nearly ₹7,000 per kilogram, sparking a rush among shoppers across major cities.
Why Did Gold and Silver Prices Fall Before Dhanteras?
Analysts attribute the sudden price drop to a combination of global and domestic factors:
Strengthening of the Indian rupee against the US dollar, which reduced import costs for bullion.
- Correction in international gold prices, following easing geopolitical tensions and stable US bond yields.
- Profit booking by investors ahead of the festive season.
- On the Multi Commodity Exchange (MCX), December gold futures were trading around ₹69,850 per 10 grams — down from ₹72,250 earlier this week. Meanwhile, silver futures fell sharply to ₹80,200 per kg, compared to ₹87,000 just a few days ago.
Festive Demand Surges as Buyers Seize the Opportunity
Despite the dip in prices, the atmosphere in gold markets remained upbeat. Jewellers across Delhi, Mumbai, Chennai, and Ahmedabad reported heavy footfall since morning, as customers took advantage of the fall.
“Every year, we see strong Dhanteras sales, but this time, the price correction has fueled an even bigger buying spree,” .
Retailers said small bars, coins, and light-weight jewellery were the top picks, especially among middle-class families looking to make small festive investments.
Global Cues and Market Data
Globally, gold prices declined by over 2% this week due to a stronger dollar index and expectations of the US Federal Reserve maintaining interest rates.
Spot gold traded near $2,320 per ounce, while silver hovered around $26.10 per ounce — marking a two-week low.
Experts also note that rising stock market confidence and reduced safe-haven demand have temporarily dampened bullion appeal.
Impact on Investors and Traders
For short-term traders, the correction presents a strategic entry point. Analysts at HDFC Securities predict that gold may rebound post-festival, once the buying momentum translates into higher retail demand.
“Gold remains a safe long-term investment. This dip is temporary and largely sentiment-driven,”
For investors, the advice is to diversify gradually rather than panic sell or rush into bulk purchases.
Government’s Monitoring and Policy Stance
The Indian government continues to monitor gold imports to prevent excessive outflow of foreign exchange. No immediate policy changes are expected, but the bullion import duty remains under review to support domestic jewellers.
Additionally, the Bureau of Indian Standards (BIS) has increased checks on hallmarking compliance during the festive season to protect consumer interests.
The Bigger Picture: Festive Optimism Amid Price Volatility
Even with price fluctuations, gold continues to shine in Indian households — not just as a symbol of wealth, but as a deeply rooted tradition. Dhanteras 2025 may mark one of the strongest buying days of the year, supported by lower prices and renewed consumer confidence.
As gold and silver prices tumble just before Dhanteras, Indian shoppers have turned the price fall into a golden opportunity. Experts advise staying cautious but optimistic — reminding investors that the festive season may soon bring both spiritual and financial rewards.
