Buying gold on Dhanteras: Yellow metal at record high; what will drive sales today?

Gold prices have rallied throughout 2025, rising almost 39% over the past year, weakening the prospects for festive selling. On Friday, just a day before Dhanteras, gold prices soared Rs 3,000 to record a new high at Rs 1,34,800 per 10 grams.Meanwhile, silver, after reaching a peak of Rs 1.76 lakh per kg on Wednesday, eased by about Rs 7,000 per kg over two days, settling at Rs 1,69,230 per kg. Despite the recent dip, silver prices have climbed 81% year-on-year, outpacing the rally in gold. These Friday rates will apply for Dhanteras sales on Saturday, as trading is closed over the weekend.Lightweight jewellery and coins in demandBuyers might be attracted by lightweight jewellery and lower-carat options, while investment demand in the form of silver and gold coins also remains strong.Suvankar Sen, managing director of Senco Gold, told ET, “High prices of gold will impact volume sales of gold this Dhanteras by 15-20%, but the value sales are expected to go up by 25%.”Samit Guha, MD and CEO of MMTC-PAMP, said, “We have witnessed significant increase in demand compared to last year for our 24-carat gold and silver minted coins and bars at 999.9 plus purity.”Darshan Desi, CEO of Aspect Bullion & Refinery, explained the reasons behind the gold rally, “Gold prices continue to surge, reaching new record highs as concerns about a potential credit crisis in the US outweigh optimism over a likely improvement in US-Russia relations.”Desi added that a weak US dollar along with expectations of interest rate cuts by the Federal Reserve are also supporting the rally.“Looking ahead, geopolitical tensions, particularly US-China trade issues and credit market worries, will remain key factors to watch, especially after the recent sharp rise in gold prices.”Silver softensSilver prices have softened slightly due to increased supply, said Surendra Mehta, national secretary of India Bullion & Jewellers Association. The premium on physical silver has dropped to Rs 15,000 per kg from Rs 22,000 per kg.According to ET, global supply of the white metal stands at 31,000 tonnes, while demand exceeds 35,700 tonnes, creating a deficit of around 3,345 tonnes (118 million ounces). The shortfall is expected to continue into 2025. Industrial demand for silver reached 680.5 million ounces in 2024 and is projected to exceed 700 million ounces this year, driven by solar, electric vehicle, and electronics sectors.The solar photovoltaic industry alone uses over 200 million ounces annually, which could rise to 450 million ounces by 2030, according to Motilal Oswal Financial Services.Platinum popular among menPlatinum, priced at Rs 48,600 per 10 grams, is emerging as a popular choice for men’s jewellery this Dhanteras. Vikas Kataria, promoter of MP-based DP Abhushan, told ET, “Platinum is seeing a strong rise in men’s jewellery, with demand nearly 20% higher than last year.”