Gold And Silver Prices On Diwali Day 2025: Check City-Wise Rates And Market Insight

On Diwali day, jewellery markets across India are buzzing with shoppers eager to make festive purchases. However, gold and silver prices have shown a slight dip after recently touching record highs, providing some relief to buyers during the festival. The mild correction comes at a time when precious metals remain in focus due to their cultural significance and investment appeal.

On the Multi Commodity Exchange (MCX) Monday morning (October 20), gold rates edged higher, supported by steady spot demand and a weaker US dollar. Gold December futures traded 0.78% higher at ₹1,28,005 per 10 grams, while Silver December contracts rose 0.41% to ₹1,57,240 per kilogram around 9:15 am.

On the Indian Multi Commodity Exchange (MCX), silver witnessed a historic intra-day drop of 16,715 points, halting its recent rally. 

Today’s Price Snapshot (October 20, 2025)

Silver Sees Sharp Global Pullback

Silver experienced a notable correction globally, falling over 6% from its recent all-time high above $54 an ounce—its steepest drop in six months. The spot price in New York declined 4.4% to $51.88 an ounce, while gold slipped 1.9% amid broader weakness in precious metals. On the Indian MCX, silver recorded a historic intraday fall of 16,715 points, signalling a cooling-off phase in the recent rally.

Why Are Prices Falling Now?

Globally, bullion markets are witnessing a mild correction after reaching record highs earlier this month. Indian gold and silver prices retreated from their all-time peaks seen around October 19. After the heavy buying spree on Dhanteras—a traditional day for gold purchases—market demand has cooled slightly, leading to profit-booking among traders.

Impact of the Dollar and Global Events

The weakening of the US dollar has been a key factor behind the recent dip in gold prices. The US Dollar Index has dropped over 9% so far this year, making gold relatively cheaper as it is priced in dollars.

Meanwhile, geopolitical tensions like the Russia-Ukraine and Israel-Hamas conflicts had earlier driven gold prices higher due to safe-haven demand. However, any progress toward ceasefires or peace agreements could reduce this demand.

Additionally, improving relations between the US and China could further ease global uncertainty. If trade tensions reduce and the anticipated meeting between Donald Trump and Xi Jinping results in positive outcomes, gold may face short-term price pressure.

Read More:Gold Price Saw a Fall After Record Highs Amid Profit-Taking and Easing Geopolitical Tensions

Conclusion

Gold and silver continue to hold immense cultural importance in India, particularly during Diwali and the upcoming wedding season. While the current dip may be temporary, long-term factors such as inflation concerns, geopolitical tensions, and safe-haven demand continue to support interest in these precious metals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.