Gold Prices Rise Ahead of Dhanteras 2025 as Global Uncertainty Boosts Demand

Gold prices in India saw an upward movement on October 15, 2025, reflecting both international market trends and strong domestic festive demand. The surge comes just days before Dhanteras and Diwali, when gold buying traditionally peaks across the country. Investors and consumers are closely following daily fluctuations, as the precious metal continues to strengthen its position as a reliable store of value amid global and economic uncertainty.

Experts believe the current rally in gold prices is being driven by a mix of global and local factors. Growing expectations of further interest rate cuts by the United States Federal Reserve have boosted demand for safe-haven assets. At the same time, the weakening Indian Rupee against the US Dollar has made imports costlier, pushing domestic prices higher. Together, these factors have added fresh momentum to India’s bullion market during one of its busiest buying seasons.

Current Gold Rates Across Major Indian Cities

Market data shows that gold prices have moved higher in major metros including Mumbai, Delhi, and Kolkata. The rates as of October 15, 2025, stand as follows

 

City	24K Gold (Rs/10g)	22K Gold (Rs/10g)	18K Gold (Rs/10g)
Mumbai	1,28,890	1,18,150	94,262
Delhi	1,28,510	1,17,810	95,050
Kolkata	1,28,890	1,18,150	94,950

While variations between cities are minor, these small differences often reflect regional import costs, local demand, and making charges imposed by jewellers. As the festive period progresses, prices are expected to fluctuate depending on both global cues and domestic retail sentiment.
 

Factors Influencing the Current Gold Rally

Analysts point to a combination of geopolitical tensions, currency movements, and festive buying as key drivers behind the price surge. According to Manav Modi, Analyst of Precious Metals at Motilal Oswal Financial Services, gold prices recently climbed above 4100 US dollars per ounce, hovering near record highs, while silver also edged higher amid global uncertainty.

He explained that safe-haven demand has remained strong as the trade dispute between the United States and China deepened and the likelihood of further interest rate cuts increased. These global developments have encouraged investors to shift toward assets like gold, which tend to retain value during periods of volatility.

Domestically, the rupee’s depreciation against the dollar has amplified the price impact. Since India imports a significant portion of its gold, a weaker currency directly raises costs for jewellers and consumers alike. As a result, gold in India has become more expensive even without major changes in international spot rates.
 

Festive Sentiment Strengthens Retail Demand

The timing of this price rise coincides with India’s busiest season for gold buying. Dhanteras and Diwali traditionally mark the start of wedding purchases and long-term investments in bullion and jewellery. Local jewellers have reported strong pre-Diwali footfall, with retail sales gaining pace as consumers view gold not only as an auspicious purchase but also as a dependable hedge against inflation and uncertainty.

Gold of 99.9 percent purity in Delhi jumped by Rs 2,850 on Tuesday to reach a new record of Rs 1,30,800 per 10 grams. The 99.5 percent variety also advanced to Rs 1,30,200 per 10 grams, according to figures from the All India Sarafa Association. On Monday, the same categories had closed at Rs 1,27,950 and Rs 1,27,350 respectively, underlining a sharp day-on-day increase.

This rally is part of a broader upward trend seen throughout 2025. Since the beginning of the year, gold prices have risen by more than Rs 51,000 or roughly 65 percent from Rs 78,950 per 10 grams recorded on December 31, 2024. Such consistent appreciation has strengthened gold’s appeal among both short-term traders and long-term investors.

Safe-Haven Asset in Times of Volatility

The global environment continues to play a major role in shaping gold’s trajectory. Heightened geopolitical risks, fluctuating oil prices, and uncertainty surrounding international trade have all contributed to sustained demand for safe-haven assets. With several economies facing sluggish growth, investors are increasingly turning to gold as a safeguard against market turbulence.

India, as the world’s second-largest consumer of gold after China, remains particularly sensitive to these international dynamics. The ongoing global preference for gold is complemented domestically by deep cultural attachment and seasonal buying behaviour, especially during the months of October and November.
 

Guidance for Gold Buyers and Investors
 

Market experts suggest that while the long-term outlook for gold remains positive, buyers should exercise caution and compare rates across different jewellers before making purchases. Prices can vary slightly based on purity levels, making charges, and regional taxes.

For investment purposes, 24-carat gold remains the preferred choice because of its higher purity and better resale value. However, 22-carat gold continues to dominate jewellery purchases due to its balance of purity, durability, and craftsmanship.

Analysts also recommend a diversified approach, where gold forms part of a broader investment strategy that includes equities, debt instruments, and mutual funds. This balanced approach can help investors manage risks while capturing potential gains from gold’s price movements.
 

The Broader Economic Context

Gold’s rise this year mirrors the uncertainties in the global economy and the evolving monetary stance of major central banks. As the US Federal Reserve signals a possible shift toward lower interest rates, global liquidity could increase, potentially driving further investment into precious metals.

For India, rising gold prices also have fiscal implications. Higher import costs could widen the trade deficit, though strong festive sales are expected to support retail and jewellery sectors. Policymakers are likely to monitor these dynamics closely as part of broader economic planning.
 

Gold’s Enduring Value in a Changing World

The steady rise in gold prices on October 15, 2025, reflects both festive optimism and global uncertainty. The combination of international monetary trends, currency fluctuations, and cultural buying patterns has created a perfect environment for gold to shine once again.

As investors seek safety and households prepare for Dhanteras, the precious metal continues to represent not just wealth, but also confidence in stability amid change. Gold remains more than a commodity in India—it is a symbol of trust, prosperity, and the enduring strength of value in uncertain times.