Gold at Record Levels and Silver Futures Up to 4 Percent Ahead of Dhanteras

Gold futures hit fresh lifetime highs on October 13, continuing their upward momentum after a brief pause due to profit booking. The yellow metal remains in focus ahead of Dhanteras, a festival traditionally associated with purchasing gold and silver across India. 

Around 12.56 PM IST on the Multi Commodity Exchange of India (MCX), December expiry gold contracts surged nearly 2 percent to reach ₹1,23,680 per 10 grams. February and April contracts also rose over 2 percent, while June contracts jumped around 3 percent to trade at ₹1,28,741 per 10 grams.

Silver futures recorded a sharper rise, climbing up to 4 percent during the same session. Recent announcements of additional US tariffs on imports from China and export controls on critical US-made software contributed to volatility in the market.

Seasonal Demand Ahead of Dhanteras

The upcoming Dhanteras festival is expected to boost demand for gold and silver. Many communities consider it auspicious to buy these metals during the occasion, creating seasonal buying pressure. 

Morgan Stanley highlighted that India's households hold an estimated US$ 3.8 trillion in gold, representing 88.8 percent of GDP. The report noted that this large household stock provides a positive wealth effect while maintaining a steady flow of demand for gold in India.

Global and Domestic Factors Driving Prices

Gold’s sharp rise globally, up 55 percent this year, and domestically, up 62 percent, is influenced by both cyclical and structural factors. Heightened geopolitical tensions, including the US government shutdown and political unrest in France, have contributed to market volatility. In addition, ongoing interest rate easing by the US Federal Reserve and a weakening US dollar have supported the rally in gold prices.

Domestically, the majority of India’s gold demand is met through imports, making currency fluctuations an important factor. The rupee has depreciated by 3.8 percent year-to-date, which has amplified rupee-denominated gold prices. 

Structural drivers, such as increasing central bank purchases and the growing role of gold as a reserve asset, have further supported the upward trend. India’s gold reserves rose to 14 percent in September 2025 from 8.1 percent in September 2023.

Rising Gold ETF Inflows

Gold Exchange Traded Funds (ETFs) have also seen strong inflows. CareEdge Ratings reported that inflows into gold ETFs quadrupled to over ₹8,000 crore sequentially. Nine new open-ended fund offers (NFOs) were launched in September 2025, mobilising around ₹0.02 lakh crore. 

Sectoral and thematic funds accounted for 45 percent of these inflows, reflecting growing investor interest in gold as a hedge against market volatility.

Read more: Gold and Silver ETFs Command 72% of Passive Funds

Conclusion

Gold and silver prices are witnessing strong movement ahead of Dhanteras, driven by seasonal demand, global trade tensions, and strategic investment flows. This combination of domestic and international factors continues to shape market dynamics for precious metals in India.

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.

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