Gold and Silver Prices Today: Hit Lifetime Highs Ahead of Dhanteras

Gold and silver prices extended their record rally, hitting fresh all-time highs on October 16. This surge comes as the festive season approaches, with Dhanteras traditionally seeing heightened demand for precious metals.

Market Performance

In the latest session, gold and silver futureson India’s Multi Commodity Exchange (MCX) climbed to record levels.

• Gold:
  • Spot price rose Rs 1,185 per 10 grams to Rs 1,28,395 per 10 grams
  • February and April futures hit Rs 1,29,380 and Rs 1,30,877 per 10 grams, respectively
• Silver:
  • December futures surged to Rs 1,64,660 per kg
  • March and May futures reached Rs 1,64,958 and Rs 1,66,338 per kg, respectively

The momentum reflects strong interest from investors and traders in both gold and silver as safe-haven assets amid market uncertainty.

Why Gold Prices Are Rising

Gold’s upward movement is driven by several global and domestic factors:

• Investors are moving funds into gold as a safe-haven asset amid risk-off sentiment.
• Weakening of the US dollar has amplified gold’s appeal.
• Central banks are increasingly holding gold reserves, reducing reliance on US Treasuries.
• Structural shifts in global finance, including a slowing US economy and expectations of Fed rate cuts, are fueling demand.
• Global demand reached 1,249 tonnes in Q2 2025, a 3% YoY increase, while mine supply remained steady at 915 tonnes, highlighting tight availability.

Why Silver Prices Are Surging

Silver has also recorded significant gains, driven by:

• A demand-supply mismatch due to industrial requirements
• Growth in electrification, solar, and green energy sectors, increasing industrial usage
• Limited supply, as silver is often mined alongside other metals
• Currency fluctuations, including a weaker rupee against the dollar, amplifying price movements

The combination of rising industrial demand and constrained supply has created a structurally supportive environment for silver prices.

Commodity Outlook Ahead of Dhanteras

The upcoming festive season is expected to influence buying patterns:

• Gold and silver remain popular as investment and gifting options
• Investors are increasingly favoring digital gold and silver bars for purity, liquidity, and tax efficiency
• Industrial demand for silver, especially in electronics, solar panels, batteries, and semiconductors, is expected to sustain price momentum

Summary

Gold and silver have reached lifetime highs, reflecting both safe-haven demand and structural supply constraints.

• Gold futures surpassed Rs 1.28 lakh per 10 grams, while silver futures hit Rs 1.66 lakh per kg
• Global and domestic factors, including currency movements, industrial demand, and central bank accumulation, are underpinning the rally
• As Dhanteras approaches, precious metals continue to attract interest from both retail and institutional buyers, reinforcing their long-term significance in portfolios

The surge highlights the enduring role of gold and silver as financial hedges and industrial metals, ensuring their prominence amid geopolitical and economic uncertainties.