The festive season has brought fresh excitement to India's bullion market, but the latest rise in gold and silver prices could increase the shopping budget for consumers. Ahead of Dhanteras, precious metal prices have witnessed a sharp recovery after remaining under pressure for several weeks. Strong demand from domestic jewellery markets and positive movements in international markets have contributed to the latest surge.

According to the All India Sarafa Association, gold prices in Delhi increased by ₹4,800 per 10 grams on Wednesday. The price of 99.9% pure gold, which stood at ₹1,41,800 per 10 grams on Tuesday, has climbed to ₹1,46,600 per 10 grams, including taxes.

Silver prices have also recorded a significant jump. The metal became costlier by ₹9,000 per kilogram in a single trading session, taking its price from ₹1.84 lakh to ₹1.93 lakh per kilogram, including taxes.

Latest Gold and Silver Prices in Delhi

The latest bullion market figures indicate a sharp increase in both precious metals ahead of the festive buying season.

These rates are reported for Delhi and include applicable taxes. Actual retail jewellery prices may differ depending on purity, making charges, GST and the jeweller.

Why Have Gold and Silver Prices Suddenly Increased?

Several domestic and international factors have contributed to the recent rise in bullion prices.

According to Saumil Gandhi, Senior Commodity Analyst at HDFC Securities, the recovery in international markets, combined with stronger festive demand in India, has supported gold prices.

Rajiv Sharan, Research Head at Brickwork Ratings, also highlighted the recent correction in gold prices. During October, gold had fallen approximately 8% from its peak as a stronger US dollar, rising bond yields and reduced expectations of interest rate cuts by the US Federal Reserve encouraged investors to book profits.

The latest recovery has reversed some of those losses, bringing renewed momentum to the precious metals market.

How Much Have Gold Prices Increased Compared to Last Dhanteras?

Despite the latest rally, the year-on-year price movement offers another interesting perspective for festive shoppers.

Last Dhanteras, gold prices reportedly increased by approximately 65% compared with the previous year. This time, the rise has been relatively moderate, with prices reportedly increasing by around 5–7% compared with the previous festive season.

This difference suggests that the current festive-season price movement has been less dramatic than the previous year's increase.

For consumers planning to purchase jewellery or coins, the difference between last year's and this year's price trends could be an important consideration.

International Gold and Silver Prices Also Witness a Rally

The increase in Indian bullion prices has been supported by a strong rally in international markets.

Spot gold reportedly gained $113.72, or approximately 3%, to reach $4,043.93 per ounce, moving above the important $4,000 level.

Silver also recorded strong gains, rising approximately 4.5% to trade at $52.03 per ounce.

These movements in global markets have contributed to the upward pressure on domestic bullion prices.

How US Political Developments Are Affecting Gold Prices

According to Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, developments in US politics have also influenced precious metal prices.

He linked the latest rally to weakness in the US dollar following the Democratic victory in the US midterm elections.

Changes in political control and expectations surrounding economic policies can influence investor sentiment. Concerns about technology-sector regulations, data-centre investments and broader economic growth may also affect market expectations.

Gold and silver often attract investor interest during periods of economic and political uncertainty, contributing to fluctuations in their prices.

What Should Buyers Keep in Mind Before Dhanteras?

The sudden increase in gold and silver prices means consumers may need to plan their festive purchases carefully.

Before purchasing jewellery, buyers should:

• Check the latest gold rate and purity.

• Look for the BIS hallmark and verify the HUID.

• Compare making charges across different jewellers.

• Ask for a detailed bill mentioning weight, purity and applicable taxes.

• Compare the final jewellery price rather than looking only at the gold rate.

With Dhanteras approaching, the bullion market is witnessing renewed activity. Whether prices continue rising or experience another correction will depend on international market movements, currency fluctuations and domestic festive demand.