Topic 5: BULLION: PROSPERITY SHINE

In October 2025, gold and silver prices in India reflected a dynamic mix of festive enthusiasm, currency movements, and global precious metal trends. Both metals witnessed strong mid-month rallies fuelled by domestic demand and safe-haven buying before easing slightly toward the end of the month. The festive period surrounding Diwali, a key driver of India’s gold and silver consumption, coincided with global uncertainties and a softer rupee, creating the perfect setup for a price surge in both commodities.
Gold began October on a steady note around ₹11,900 per gram but soon gathered upward momentum as robust jewellery demand emerged ahead of the festive season.
The rupee’s mild depreciation further added to the local price rise, as it made imported bullion more expensive. By mid-October 24-carat gold touched an all-time high of approximately ₹13,277 per gram, mirroring the global rally that saw international prices breach the $4,000 per ounce mark. The surge was underpinned not only by Indian festive buying but also by sustained central bank accumulation worldwide, as policymakers sought to diversify reserves amid economic and geopolitical uncertainties. However, the rally lost some steam in the second half of the month. As the festive fever cooled and global bullion prices corrected modestly, Indian traders engaged in profit booking. By the end of October, gold had stabilized around ₹12,200 per gram—still significantly higher than its early-month level, signalling resilient underlying demand. Overall, the month reaffirmed the strong seasonal influence of Indian consumers on gold prices and highlighted how global and domestic factors often converge to shape short-term trends in bullion markets.
Silver followed a similar trajectory but with even sharper swings. The metal started the month trading near ₹1,51,000 per kg and experienced a steep surge through the first half of October. Around October 13, silver climbed to about ₹1,85,000 per kg, and within just two days, it spiked further to nearly ₹1,90,000 per kg, marking one of the sharpest short-term gains in recent months. This rally was driven by festive-season demand, heightened investment interest, and a weaker rupee, which inflated import costs. Silver’s dual role as both an industrial and investment metal also attracted buyers seeking diversification and inflation protection amid global market volatility. Toward the month’s end, some cooling occurred as traders booked profits and retail buying normalized. Even so, silver remained well above its early October levels, underscoring sustained investor confidence and festive-led demand momentum that kept the metal shining bright through October 2025.



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