Gold Prices Drop on Diwali Morning
As the country celebrates Diwali, gold prices have taken a surprising dip. On Monday morning, October 20, the price of 24-carat gold in Delhi slipped to ₹1,31,000 per 10 grams, while 22-carat gold was trading at ₹1,20,090 per 10 grams. This decline follows a ₹2,400 drop in gold rates on Dhanteras at the national capital’s bullion market, where the price had settled at ₹1,32,400 per 10 grams.
Interestingly, despite this short-term correction, gold has seen a massive jump of ₹51,000 (around 62.65%) over the past year—from last Dhanteras to this one—reflecting the overall bullish trend in the precious metals market.
Gold prices vary slightly across major Indian cities depending on local taxes and demand. Here’s how rates stand today:
| City | 22-Carat (₹/10g) | 24-Carat (₹/10g) |
|---|---|---|
| Delhi | 1,20,090 | 1,31,000 |
| Mumbai | 1,19,940 | 1,30,850 |
| Ahmedabad | 1,19,990 | 1,30,900 |
| Chennai | 1,19,940 | 1,30,850 |
| Kolkata | 1,19,940 | 1,30,850 |
| Hyderabad | 1,19,940 | 1,30,850 |
| Jaipur | 1,20,090 | 1,31,000 |
| Bhopal | 1,19,990 | 1,30,900 |
| Lucknow | 1,20,090 | 1,31,000 |
| Chandigarh | 1,20,090 | 1,31,000 |
In Mumbai, Chennai, and Kolkata, 24-carat gold is currently priced at ₹1,30,850 per 10 grams, while 22-carat gold stands at ₹1,19,940 per 10 grams.
According to Anantha Padmanabhan, founder member and former chairman of the All India Gem & Jewellery Domestic Council (GJC), gold prices are expected to continue rising and could touch ₹1.50 lakh per 10 grams in the upcoming months.
He attributes this potential surge to strong global central bank buying and robust public demand from countries like China and Japan. Padmanabhan explained in an interview with ANI, “Unless a sharp correction occurs in the near term, gold is likely to hover around ₹1.50 lakh per 10 grams.”
He further added that if trade talks between China and the US fail and the Russia-Ukraine conflict persists, the yellow metal might witness another wave of upward momentum. However, in the event of a temporary correction, gold could briefly fall to around ₹1.15 lakh per 10 grams before bouncing back.
Alongside gold, silver prices have also seen a downward trend this Diwali morning. The white metal slipped to ₹1,71,900 per kilogram, compared to ₹1,70,000 per kilogram on Dhanteras, when prices had already fallen by ₹7,000.
Over the past year, silver has surged by ₹70,300 or approximately 70.5%, showcasing significant volatility driven by both domestic and international market forces.
Experts suggest that the short-term price decline in both gold and silver may be linked to profit-booking, fluctuations in global demand, and changes in US dollar strength. However, long-term fundamentals remain strong, with central bank reserves, geopolitical tensions, and festive season demand likely to sustain investor interest.
As India enters the festive and wedding season, analysts believe that any dips in gold and silver prices could be temporary—presenting an opportunity for investors and buyers to make timely purchases before the next potential surge.
In Summary:
24-carat gold in Delhi is priced at ₹1,31,000/10g.
Silver is trading at ₹1,71,900/kg.
Analysts expect gold to reach ₹1.5 lakh/10g in the near future.
Despite Diwali’s morning dip, long-term outlook remains bullish.
