Dhanteras Demand Propels Gold to Record High of Rs.1,34,800 per 10 Grams

Festive Frenzy and Market Dynamics

The price spike was fueled by heavy purchasing from jewellers and retailers ahead of the festivals of Dhanteras and Diwali.Dhanteras, celebrated on October 18th this year, is traditionally considered one of the most auspicious days to buy gold and silver, leading to a seasonal spike in demand . Stockists built fresh positions in anticipation of sustained consumer interest, further tightening supply and pushing prices upward. In a divergent trend, silver prices tumbled by Rs.7,000 to Rs.1,77,000 per kg from the previous session's close of Rs.1,84,000 .

Global Drivers and Expert Insight

The domestic rally was supported by a bullish global market,where spot gold had earlier reached an all-time high of $4,378.69 per ounce before experiencing a minor correction . Analysts pointed to a combination of factors driving the international rally. Jateen Trivedi, VP Research Analyst at LKP Securities, stated, "Gold extended its winning streak with strong gains as the ongoing US government shutdown and a dollar index below 99 continued to support safe-haven flows into bullion" . He added that sustained uncertainty in the U.S. economy and delayed data releases have kept investors inclined toward gold as a defensive asset.

Market Sentiment and Future Outlook

Despite a slight dip in global spot prices,the overall sentiment for gold remains highly constructive. Experts view the pullback as a short-term correction after a steep rally . The broader outlook is supported by expectations of monetary easing by the U.S. Federal Reserve, ongoing geopolitical tensions, and consistent buying by central banks. For Indian consumers, the record-high prices represent a mixed blessing—increasing the investment value of existing holdings but raising the cost of new festive purchases.