Gold and Silver Prices Dip After Record Highs, Dhanteras Jewellery Sales Soar

Gold and silver prices experienced a slight correction after reaching record highs, yet festive jewellery sales during Dhanteras saw a strong surge of 35–40% across India.Silver ETFs, which had delivered impressive one-year returns of around 65–70%, also faced sharp declines as global prices softened due to improved supply and reduced safe-haven demand. Earlier this month, silver prices had spiked past $40 an ounce and briefly crossed $50 amid concerns over physical shortages. However, easing trade tensions led to a retreat, with US silver prices falling over 6% on October 17, triggering similar corrections in India. On October 20, silver prices in India dropped from Rs 1,71,275 per kg to Rs 1,60,100 per kg, impacting ETFs directly.

Gold prices softened as well after hitting all-time highs. Spot gold stood at $4,340.29 per ounce, slightly below Monday’s record of $4,381.21. US gold futures also eased amid profit-booking and expectations of interest rate cuts by the Federal Reserve.

Despite short-term price corrections, festive demand remains robust. The All India Gem & Jewellery Promotion Council reported sales of around 50–60 tonnes of jewellery over Dhanteras, generating nearly Rs 85 crore. While volumes were similar to last year, the overall value grew 35–40% due to higher prices and rising consumer interest.“Silver sales have nearly doubled this season. With Dhanteras falling on a weekend and followed by Diwali and Bhau Beej, the five-day festive period is expected to bring excellent results,” the council added. They predict total jewellery sales could reach 100–120 tonnes, valued between Rs 1 lakh crore and Rs 1.35 lakh crore.