As Diwali 2025 approaches, gold and silver markets have shown remarkable performance, with increases of more than 47 per cent and 52pc respectively this year.
On the MCX, prices have exceeded 118,000 Indian rupees per 10 grams, leading investors to speculate about further growth potential during the upcoming festive period.
Analysts predict continued growth, with gold potentially reaching 122,000 rupees by Diwali.
The 2025 precious metals surge has been driven by various factors including festival demand, accommodative central bank policies, global political tensions and sustained ETF investments, leading to unprecedented price levels.
Silver prices have also risen significantly, trading above 144,000 rupees per kg, with projections suggesting 150,000 rupees by the festival period.
The industrial sector and green energy requirements could boost silver demand.
Manoj Kumar Jain from Prithvifinmart Commodity Research notes that September’s performance, with gold increasing more than 10pc and silver 15pc internationally, indicates a “super bull run” for both metals. Additionally, his predictions include gold reaching 122,000 rupees by Diwali and 125,000 rupees by year-end, with silver potentially hitting 150,000 rupees and 158,000-160,000 rupees respectively.
Internationally, Jain anticipates gold at $3,940-$4,000 and silver at $48.40-$50 per troy ounce. Support levels are $3,720 (international) and 110,660 rupees in India for gold, with silver at $44.40 and 134,400 rupees.
As Diwali approaches, jeweller and retail demand is expected to increase. Traditional peak buying during festivals and weddings could further strengthen prices already elevated by global economic uncertainties.
Despite potential profit-taking opportunities, analysts maintain that fundamental factors remain positive, with any price decreases likely being temporary.
Jigar Trivedi of Reliance Securities said, “By Diwali 2025, gold may trade around 119,000-120,000 rupees per 10g, driven by global uncertainties, central bank buying, high inflation, Fed stance and a weaker rupee. Safe-haven demand is strong as geopolitical tensions and economic slowdown fears persist.”
He adds that silver might reach 148,000-150,000 rupees per kg.
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