Gold-Silver Rates Update: Will Gold and Silver prices touch ₹1.5 and ₹2 lakh before Diwali?

Gold and silver prices have hit historic highs amid soaring festive demand, a weakening rupee, and strong global trends. With gold crossing ₹1.30 lakh and silver nearing ₹2 lakh, experts predict further spikes before Diwali. Caution is advised.

New Delhi: Gold and silver prices in the country have reached historic highs. In particular, both gold and silver set new records in the Delhi bullion market on Tuesday. For the first time, the price of gold crossed ₹1.30 lakh per 10 grams, while silver touched ₹1.85 lakh per kg.

Why did the prices suddenly rise?

The biggest reason for this increase is the high demand ahead of Dhanteras and Diwali. As the festivals approach, people's shopping has increased. There has been a huge surge in demand for gold and silver from jewelers and retail buyers.

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According to the All India Sarafa Association (AIBJA)

• Gold of 99.9% purity rose by ₹2,850 to ₹1,30,800 per 10 grams.
• Gold of 99.5% purity also rose by the same amount to close at ₹1,30,200 per 10 grams.
• Both have reached their highest levels ever.

Historic Surge in Silver Prices

Silver prices have also seen a steady rise. On Tuesday, the price of silver rose by ₹6,000 to ₹1,85,000 per kg (including taxes). This was the fifth consecutive day of silver price increases.

Since February 2025, silver has become costlier by ₹34,500. Since the beginning of the year, it has registered a total increase of ₹95,300, or more than 106%. Experts believe that, given the current trend, silver prices could reach ₹2 lakh per kg by Diwali.

Rupee Weakness and Global Market Impact

Another major reason for this price surge is the Indian rupee's decline. On Tuesday, the rupee fell 12 paise against the US dollar to a record low of ₹88.80 per dollar. This increased import costs and pushed up domestic gold and silver prices.

Gold and silver are also trending higher in the international market:

• Gold reached a record high of $4,179 per ounce, then closed at $4,140.
• Silver rose to $53.54 and then fell slightly to close at $51.36.
• Further Rise Expected by Diwali

Commodity experts say that if the current market trend continues, both gold and silver prices will see further increases by Diwali. The ₹2 lakh per kg mark for silver doesn't seem far away.

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Booming demand during the festive season, a weak rupee, and strength in international markets—all three factors are pushing gold and silver to record highs. This is a time for investors and buyers to proceed with caution and prudence.