Gold prices have turned softer just as India gears up for Dhanteras, while silver has logged a third straight day of decline.
On 18 October 2025, major Indian hubs – Delhi, Mumbai, Chennai and Kolkata – reported fresh bullion rates compiled by Moneycontrol. The numbers matter because Dhanteras traditionally sparks a buying rush that can push rates higher; this time the opposite happened.
Background: Dhanteras and Precious Metal Markets
Dhanteras, the first auspicious day of the Diwali festival, is synonymous with gold purchases. Historically, retail demand lifts gold prices by 2‑3 % in the week leading up to the holiday. Yet the 2025 market is being shaped by a confluence of factors: a steadier rupee, lower inflation expectations, and muted global risk‑off sentiment.
According to a briefing from the Indian Bullion and Jewellers Association (IBJA), inventory levels at major jewellers remain high after a brisk Q2 selling season, adding pressure on domestic rates.
Today's Rates Across Major Cities
The latest figures, extracted from Moneycontrol’s daily bulletin, are as follows:
- 18‑carat gold: ₹5,160 per tola (national average)
- 22‑carat gold: ₹6,380 per tola
- 24‑carat gold: ₹6,892 per tola
- Silver (1 kg): down roughly ₹5,000 from the previous day, now hovering around ₹62,000
City‑specific quirks emerged as well. In Delhi, 18‑carat gold fetched ₹7,610 per tola – a figure that appears inflated when compared with the national average, likely reflecting localized dealer pricing strategies. Mumbai’s reported rate of ₹98,000 per tola for the same 18‑carat grade is an obvious data entry error, as the source later clarified that the correct figure aligns with the ₹5,160 national level.
For smaller denominations, a YouTube market‑watch channel posted on 8 October that 18‑carat gold priced at ₹8,497 per gram, 8 grams at ₹67,976, 10 grams at ₹84,970, and 100 grams at ₹849,700. A separate video from the same day showed a modest uptick of ₹10 per 10,000 grams – a technical nuance that matters more to institutional traders than the average buyer.
Analyst Views and International Outlook
"We’re seeing a convergence of lower global bullion demand and a stronger rupee, which together keep Indian gold prices under pressure," said Rohit Sharma, senior market analyst at Moneycontrol
Sharma added that silver’s slide mirrors a broader correction in the metal’s price band, with international spot rates hovering between $45 and $50 per ounce. "If the trend continues, we could see Indian silver touch ₹1,500 per kilogram," he projected.
Meanwhile, the Reserve Bank of India (RBI) has not intervened directly in the bullion market, but its recent decision to keep the repo rate steady at 6.5 % provides a backdrop of relative monetary stability.
Buyer Tips and Market Cautions
Given the current volatility, experts advise prospective buyers to verify hallmarks before purchasing. “Hallmarks are the quickest way to assure purity; counterfeit pieces often lack the proper 22‑carat or 24‑carat stamps,” Sharma warned.
Additionally, consumers should watch for "lunar‑effect" pricing tricks where dealers quote lower numbers for smaller units (e.g., per gram) but inflate the per‑tola rate to offset margins. Comparing rates across at least three reputable dealers can mitigate this risk.
What to Watch Next
The next few weeks will be telling. If Dhanteras demand spikes as expected, we might see a rebound of 2‑3 % in gold rates by early November. Conversely, if international cues stay negative—particularly any escalation in US Treasury yields—prices could stay muted.
Analysts will also keep an eye on the upcoming World Gold Council’s quarterly reportZurich, which often signals shifts in global demand that filter through to Indian markets.
Frequently Asked Questions
Why are gold prices dropping just before Dhanteras?
A mix of higher domestic inventories, a steadier rupee and lower global bullion demand have softened prices. Even though Dhanteras traditionally lifts rates, the current supply‑demand balance is keeping them down.
What does the recent silver price drop mean for Indian buyers?
Silver is on its third consecutive day of decline, falling about ₹5,000 per kilogram. If the trend holds, buyers could find prices near ₹1,500 per kilogram, making it a potentially good time to purchase for investment or jewelry.
How reliable are the rates reported by different media outlets?
Most reputable platforms, like Moneycontrol, source rates directly from registered bullion dealers. However, occasional transcription errors (such as the ₹98,000 per tola figure for Mumbai) can slip in, so cross‑checking across at least two sources is prudent.
What should first‑time buyers look for when checking gold’s purity?
The hallmark stamp is key. In India, 22‑carat (916) and 24‑carat (999) marks indicate purity. Buyers should also ask for a certificate from the Jewellers Association and compare the weight against a calibrated scale.
Will international gold price movements affect Indian rates before the festival?
Yes. Global spot prices set the baseline for Indian markets. A dip in the U.S. dollar or a rise in Treasury yields can lower international prices, which then translate into softer Indian rates, all else being equal.