Gold Price Today: Diwali sparks yellow metal to Rs 1.28 lakh, silver near Rs 1.6 lakh
Gold and silver futures opened with strong gains on the Multi Commodity Exchange (MCX) this Diwali, reflecting firm global cues and robust seasonal demand. The December futures contract for gold opened at Rs 1,28,134 per 10 grams, up Rs 1,126 or 0.89%, while silver surged Rs 1,996 or 1.27% to trade at Rs 1,58,600 per kilogram.
The uptick in precious metals comes after international markets posted a steady recovery, with spot gold and silver inching higher following last week’s volatility.
Domestically, the festive buying momentum around Dhanteras and Diwali has added to the bullish sentiment, with industry reports indicating higher footfall and preference for coins and bars.
On the global front, spot gold was trading 0.4% higher at $4,263.59 per ounce as of 0203 GMT, rebounding after a 1.8% slump on Friday, its sharpest single-day fall since mid-May.
Despite Friday’s dip, gold recorded its best weekly performance since April, having briefly surged to a record high of $4,378.69 an ounce during the week. U.S. gold futures for December delivery also rose 1.5% to $4,275.40 per ounce.
Spot silver prices were up 0.5% at $52.08 per ounce, following a steep 4.4% decline in the previous session.Gold has gained over 60% year-to-date, supported by factors such as ongoing geopolitical tensions, aggressive rate-cut bets, de-dollarisation efforts, central bank buying, and strong inflows into exchange-traded funds (ETFs).The rebound in gold prices on Monday came after comments from U.S. President Donald Trump, who stated that his proposed 100% tariff on goods from China may not be sustainable and added that discussions with Chinese President Xi Jinping are likely.
These statements helped ease U.S.-China trade tensions and pushed investors towards riskier assets, slightly reducing safe-haven demand.
Meanwhile, according to a Reuters report, HSBC projected that gold could rise as high as $5,000 an ounce by 2026, citing heightened global risks and new market participants. In India, rising prices have influenced consumer preferences, with many buyers opting for gold coins and bars over jewellery during the Dhanteras festival, according to industry officials.
In a key milestone, India’s gold reserves surpassed the $100 billion mark for the first time, as per data from the Reserve Bank of India. However, central bank purchases have slowed considerably in 2025 amid a global rally in gold prices.
Today, the US Dollar Index, DXY, was hovering near the 98.46 mark, falling 0.03 or 0.03%.
What Should Investors Do?
The rally in gold prices has prompted varied reactions from market experts and wealth managers. According to Pankaj Pandey, Head of Retail Research at ICICI Direct, the recent outperformance of gold and silver suggests a more restrained allocation strategy. He recommends a 5% allocation to gold and 5% to silver, while advocating for 10% exposure to debt and the remaining 80% to Indian equities.
Apurva Sheth of Samco Securities advises caution, especially on silver, suggesting a 5% allocation for now due to stretched valuations. His broader allocation strategy includes 25% each to equity, gold, and debt, with the remaining 25% in cash.
Green Portfolio PMS recommends a relatively aggressive strategy, advising clients to allocate 10% to gold ETFs and 20% to silver ETFs, with the rest in equities.
Rupesh Patel, Senior Fund Manager at Nippon India Mutual Fund, noted that while equities are likely to see higher allocations in the near term due to improving earnings outlook, he will continue to maintain some exposure to gold and silver as a hedge against potential disruptions in global financial markets and currency fluctuations.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 95,576/8 grams while pure gold (24 carat) prices stand at Rs 1,02,800/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 94,992/8 grams while pure gold (24 carat) prices stand at Rs 1,02,264/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 94,800/8 grams while pure gold (24 carat) prices stand at Rs 1,02,024/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 95,256/8 grams while pure gold (24 carat) prices stand at Rs 1,02,464/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)