18
Gold Hits Record Rs 1.34 Lakh on Dhanteras 2025; Experts Advise Buying Dips
When Dhanteras 2025India arrived on Saturday, the gold price surged to a fresh all‑time high, sending traders in Delhi and Mumbai scrambling to adjust their books.
By the time the official noon rates were announced, Indian Bullion & Jewellers Association reported that gold had jumped Rs 3,200 per 10 grams in the early session, peaking at Rs 1,34,800. A few minutes later, at 10:50 AM IST, the rate eased to Rs 1,27,550, according to India Bullion data. Meanwhile, silver slipped by roughly Rs 7,000 per kilogram, a downturn highlighted by NDTV India.
Why Gold Went Up – Market Forces at Play
Several factors converged to push the metal higher. First, the Reserve Bank of India has been a steady buyer of gold for its sovereign fund, bolstering demand even as global central banks added to their reserves. Second, the wedding season, which peaks in October, typically fuels purchases of gold jewellery and coins. Finally, the festive aura of Dhanteras – traditionally considered an auspicious day to buy precious metals – acted like a catalyst, prompting both retail shoppers and institutional investors to rush in.
Key Timing Windows for Buyers
The astrologically‑calculated muhurats added a layer of urgency. Here’s the timetable that most merchants posted on their doors:
- Dhanteras Puja Muhurat: 07:15 PM – 08:19 PM IST
- Pradosh Kaal: 05:48 PM – 08:19 PM IST
- Vrishabha Kaal: 07:15 PM – 09:11 PM IST
- Afternoon Muhurat (Chara, Labha, Amrita): 12:18 PM – 04:23 PM IST
- Evening Muhurat (Labha): 05:48 PM – 07:23 PM IST
- Night Muhurat (Shubha, Amrita, Chara): Oct 19, 08:57 PM – 01:41 AM IST
Traders swear by these windows, believing that purchases made within them bring prosperity for the coming year.
On‑the‑Ground Sentiment: Delhi’s Sarrafa Market
In the bustling lanes of Sarrafa market in Delhi, jewelers reported an uptick in inventory orders days before the festival. “We’re loading up on 22‑carat gold and silver coins because customers want portable, easy‑to‑store assets,” said a shop owner who asked to remain anonymous. The market’s activity mirrored a broader trend: buyers opting for lightweight, high‑design pieces that cost less per gram but carry the same cultural weight.
Analyst Takeaways and Forecasts
Two major financial outlets weighed in. The Economic Times quoted senior analysts saying the current rally is “fuelled by a perfect storm of festive demand and macro‑level buying.” In a separate piece, Republic World projected that gold could climb to ₹1.45–₹1.5 lakh per 10 grams by the next Samvat, a forecast that would set a new benchmark for the Indian market.
Meanwhile, LKP Securities offered a more tactical spin. In a research note dated October 17, 2025, the firm wrote, “Gold prices are poised for a continued ascent, especially with Dhanteras and Diwali approaching. Buying on dips makes sense for investors looking to lock in long‑term wealth.” The suggestion aligns with the classic advice of purchasing during brief pull‑backs rather than chasing the high‑water mark.
Consumer Behavior Shifts
NewsX Live, reporting at 1:14 PM IST on the day of the festival, observed that while gold’s headline price was lofty, footfall at jewelry stores remained robust. Buyers were gravitating toward coinage and smaller ornaments – think gold bangles, pendants, and earrings – instead of heavy traditional sets. “The shift reflects a desire for liquidity,” the report noted, adding that many consumers also explored digital gold platforms and gold‑backed exchange‑traded funds (ETFs) as alternatives.
Investment Options Beyond Physical Gold
For those wanting to hedge without the storage hassle, three main avenues surfaced:
- Digital Gold: Offered by fintech firms, it lets you buy fractions of a gram that are stored in secured vaults.
- Gold ETFs: Traded on Indian stock exchanges, they mirror spot prices and are tax‑efficient.
- Physical Coins: 24‑carat bullion coins remain popular for gifting during Dhanteras.
Experts cautioned that while all three track the metal’s price, liquidity, custodial risk, and tax treatment differ, so investors should pick what matches their risk appetite.
What’s Next? Post‑Diwali Outlook
Historically, the gold market eases after the Diwali sales wave subsides, usually within two weeks. Analysts expect a modest correction once the festive spend tapers off, but the underlying demand from the wedding season and RBI’s strategic purchases could keep the floor relatively high.
For now, the prevailing sentiment is one of cautious optimism. As one senior trader in Mumbai put it, “If you can get in at ₹1.27 lakh during a dip, you’re probably looking at solid returns over the next year.”
Key Facts
- Record high gold price on Dhanteras: Rs 1,34,800 per 10 g.
- Adjusted price by 10:50 AM IST: Rs 1,27,550 per 10 g.
- Silver fell by about Rs 7,000 per kg.
- RBI’s ongoing gold purchases helped sustain demand.
- Analysts forecast a possible rise to ₹1.45–₹1.5 lakh by next Samvat.
Frequently Asked Questions
How does the Dhanteras gold surge affect ordinary consumers?
Most shoppers see the higher price as a signal to buy earlier in the day or during one of the auspicious muhurats, rather than waiting for a possible dip later. Small‑ticket items like coins or lightweight jewellery become attractive because they let buyers participate without a huge outlay.
What are the recommended investment strategies during this price rally?
Analysts from LKP Securities and Republic World suggest buying on short‑term pull‑backs rather than chasing the peak. Diversifying across physical gold, digital gold, and gold‑linked ETFs can provide exposure while managing storage and liquidity concerns.
Will the Reserve Bank of India's buying policy keep gold prices high?
The RBI’s regular purchases add a steady demand floor, especially during festival seasons when domestic buying spikes. While the RBI won’t single‑handedly dictate market direction, its activity does cushion the metal against sudden price drops.
How does the current gold price compare to the same period last year?
In October 2024, gold hovered around Rs 1,06,000 per 10 g on Dhanteras. The 2025 surge represents a roughly 27% year‑over‑year increase, underscoring a broader upward trend fueled by both domestic and global demand.
What tax implications should investors consider when buying gold on Dhanteras?
Physical gold purchases over ₹1 lakh are subject to a 3% goods‑and‑services tax (GST). However, investments in digital gold or gold ETFs are treated like mutual fund units, attracting capital‑gains tax only on redemption. Consulting a tax advisor is advisable to optimise savings.
