Significant Drop in Gold and Silver Prices Ahead of Diwali
Gold and Silver Prices Decline
New Delhi. As the festive season approaches, particularly with Diwali around the corner, the bullion market is witnessing a consistent decline in gold and silver prices. According to data from the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold has dropped by ₹2,530, now standing at ₹1.38 lakh per 10 grams, while silver has decreased by ₹1,372, priced at ₹1.80 lakh per kilogram. Previously, on Friday, gold was at ₹1.40 lakh and silver at ₹1.81 lakh per kilogram.
Looking at the figures for October, gold prices fell by ₹8,084, and silver prices saw a significant drop of ₹39,485 throughout the month. On October 1, 2026, silver was priced at ₹2.20 lakh per kilogram, and gold at ₹1.48 lakh per 10 grams. Commodity experts attribute this decline to the strengthening of the US dollar and bonds in the international market, along with profit-taking by large investors at elevated prices.
Experts believe several key factors are contributing to the drop in gold and silver prices. For gold, the selling pressure from investors at high prices, a strong dollar, and a reluctance among regular buyers to purchase are primary reasons. In the case of silver, reduced demand from solar and electronics industries, sudden selling pressure in the futures market, and the influence of gold prices are significant factors. Commodity analysts recommend that investors consider purchasing in installments rather than making a lump-sum investment, with a long-term perspective of 6 months to 1 year.
The variation in gold and silver prices across different cities can be attributed to transportation and security costs, the volume of local purchases, regulations from regional jewelry associations, and the jeweler's existing stock and purchase price. At the beginning of this year, on December 31, 2025, silver was priced at ₹2.30 lakh, reaching an all-time high of ₹3.86 lakh on January 29, after which it has seen a decline of over ₹2 lakh. Similarly, gold has decreased by nearly ₹38,000 from its peak of ₹1.76 lakh in January.
Market experts have provided essential tips for buyers. When purchasing gold, always opt for certified gold with the Bureau of Indian Standards (BIS) hallmark, which includes an alphanumeric hallmark number. Additionally, ensure to cross-check the correct weight and the official market price for various carats, such as 24, 22, and 18. For identifying genuine silver, methods like the magnet test, ice test, scent check, and rubbing against a white cloth can be employed.