Gold prices have once again scaled new peaks ahead of Dhanteras 2025, crossing ₹1.23 lakh per 10 grams on the Multi Commodity Exchange (MCX). The December 2025 futures jumped nearly 2%, while longer-dated contracts also hit lifetime highs — with June futures trading close to ₹1.28 lakh per 10 grams.
Silver followed suit, rallying up to 4% in Monday’s session.
The surge in precious metals comes amid a perfect mix of festive demand, global economic uncertainty, and safe-haven buying, making gold one of the most closely watched assets this season.
What’s Fueling the Rally?
A combination of global triggers and domestic demand has powered gold’s sharp rise this year.
- Global Economic Uncertainty
Heightened US–China trade tensions, political instability in parts of Europe, and the recent US government shutdown have pushed investors worldwide toward safe-haven assets.
- Expectations of US Rate Cuts
The US Federal Reserve’s rate-easing cycle has made non-yielding assets like gold more attractive. Lower interest rates typically weaken the dollar and improve the relative appeal of bullion.
- Central Bank Buying and Reserve Diversification
According to recent data cited by global institutions, central bank gold holdings have nearly doubled in the past decade.
India, too, has steadily increased its reserves — from 8.1% of total holdings in 2023 to around 14% by September 2025.
- Festive and Seasonal Demand in India
With Dhanteras and Diwali around the corner, India’s festive season is driving renewed retail and jewellery demand.
India’s gold imports almost doubled in September compared to the previous month as jewellers and banks replenished stocks ahead of the festival period.
- Rising Household Wealth in Gold
A recent report by Morgan Stanley estimated that Indian households now hold gold worth nearly US$3.8 trillion — equivalent to about 88.8% of India’s GDP. This massive store of wealth not only underlines India’s cultural affinity for gold but also reinforces its importance as a financial cushion.
- Strong ETF Inflows
Gold-backed exchange-traded funds (ETFs) have witnessed a sharp rise in inflows as investors diversify portfolios amid market volatility.
The Silver Sparkle
Silver, too, is seeing renewed momentum — up over 60% this year globally. Demand for silver is being supported by both industrial applications and investment interest, as the metal often benefits during broad commodity rallies.
Why the Rally Matters for Investors
Gold’s climb to record highs is more than just a festive headline. It reflects:
- Growing global risk aversion among investors
- The return of gold as a key hedge against inflation and currency swings
- India’s continued position as a top global consumer of gold
While price fluctuations are expected, the broader uptrend highlights gold’s enduring appeal as a store of value during times of uncertainty.
Bottom Line
Gold’s surge past ₹1.23 lakh per 10 grams ahead of Dhanteras underscores a mix of global headwinds and domestic demand strength. With central banks accumulating reserves, a softer dollar outlook, and Indian festive sentiment supporting buying, gold continues to glitter in 2025 — not just as a symbol of tradition, but as a reflection of global economic confidence.
