When Narendra Modi, Prime Minister of India Government of India posted his Dhanteras greeting on X at 8:00 AM IST, investors were already eye‑balling a sudden correction in precious‑metal markets.
The greeting, which read, “Heartfelt Dhanteras greetings to all my family members in the country. On this sacred occasion, I pray for everyone’s happiness, prosperity, and good health. May Lord Dhanvantari bestow his abundant blessings upon all,” was shared by The Indian Express in its live‑updates feed.
That same morning, the Multi Commodity Exchange (MCX) showed the 24‑karat gold index at Rs 1,25,957 per 10 grams—a roughly 3 % slide from the record Rs 1,32,294 hit just a day earlier—while silver futures slipped Rs 13 per gram, the steepest single‑day dip since the start of October.
Cultural Significance of Dhanteras and Festive Gold Buying
Dhanteras 2025India falls on the thirteenth lunar day of Krishna Paksha in the month of Ashwin. Traditionally, it marks the most auspicious moment to purchase gold, silver, and other valuables ahead of Diwali.
Families line up at jewelers, and banks report a surge in gold loan applications. This year, however, the festive fervor ran into an unexpected headwind—global market jitters that nudged prices lower just as shoppers were gearing up.
Market Movements on the Morning of Dhanteras 2025
At 8:00 AM IST, MCX’s gold index was quoted at Rs 1,27,320 per 10 grams, but by 10:30 AM the price had retreated to the Rs 1,25,957 level. Silver, meanwhile, fell from Rs 1,70,415 per kilogram on October 17 to Rs 1,53,929 on the 18th—a more than 8 % correction.
Analysts point to a “profit‑taking wave” that followed a weeks‑long rally. The rally had been driven by a mix of easing geopolitical tensions in the Middle East and a softer US dollar, both of which had made bullion attractive. When the news of a possible pause in the negotiations leaked, traders rushed to lock in gains.
Data from Goodreturns.in showed 24‑karat gold at Rs 13,086 per gram on October 18, after hovering at Rs 13,277 the day before. The 22‑karat variant sat at Rs 11,995 per gram, reflecting a 9.74 % rise for the month.
Analyst Take on the Sharp Correction
“We’re seeing a classic case of short‑term sentiment overruling seasonal demand,” said Ramesh Patel, senior market strategist at Axis Capital. “The global risk‑off sentiment was enough to outweigh the usual Diwali buying impulse.”
Other commentators, like Shreya Iyer of Motilal Oswal, added that while the dip offers a breather for retail buyers, the underlying demand curve remains strong. “If the price stabilises, we could see a resurgence in purchases in the next few days,” she noted.
The correction also gave a modest boost to the “gold‑exchange‑traded‑fund” (ETF) volumes, which rose 3 % on the day, indicating institutional players were adjusting their exposure.
City‑Specific Price Snapshots
Retailers across major metros reported slightly different price points. In Delhi, 24‑karat gold fetched Rs 13,101 per gram, while the capital’s 22‑karat rate stood at Rs 12,010.
- Mumbai: Rs 13,086 (24‑karat) and Rs 11,995 (22‑karat)
- Chennai: Rs 13,037 (24‑karat) and Rs 11,950 (22‑karat)
- Bengaluru: Rs 13,020 (24‑karat) and Rs 11,980 (22‑karat)
- Hyderabad: Rs 13,086 (24‑karat) and Rs 11,995 (22‑karat)
Even though the retail rates dipped, silver futures on MCX actually closed higher, a paradox that reflects divergent dynamics between spot and futures markets.
Policy Context and Future Outlook
The government’s 1 kilogram import cap on gold remains in place, a measure aimed at curbing the trade deficit. Trade officials say the cap has little immediate impact on domestic buying—most consumers purchase through local jewelers who source from domestic refiners.
Looking ahead, economists expect the gold market to hover in a narrow band until the next major macro event, likely the Fed’s policy decision later in November. If global risks subside further, we could see a gentle climb back toward pre‑Dhanteras levels.
In the meantime, the current dip is a welcome relief for many families who had been budgeting for a Diwali purchase. As one Delhi jeweler, Aman Singh, put it, “The price correction means my customers can finally get the weight they want without breaking the bank.”
Frequently Asked Questions
Why did gold and silver prices fall on Dhanteras despite high festive demand?
The dip was driven by a profit‑taking rush after weeks of a rally fueled by easing geopolitical tensions and a weaker US dollar. Traders sold into the rally, temporarily outweighing the usual surge in buying that the festival brings.
How much did the 24‑karat gold price change on October 18, 2025?
The 24‑karat gold price slipped from a record Rs 1,32,294 per 10 grams on October 17 to about Rs 1,25,957 on October 18—a drop of roughly 3 %.
Which cities saw the highest gold prices during the Dhanteras correction?
Delhi posted the highest 24‑karat rate at Rs 13,101 per gram, closely followed by Mumbai and Hyderabad at Rs 13,086 per gram. Chennai’s price was slightly lower at Rs 13,037 per gram.
Will the government’s gold import cap affect future price movements?
The 1 kilogram per‑person cap is aimed at managing the trade deficit, but most domestic purchases happen through local refiners. Thus, the cap’s direct impact on retail prices is limited, though it does shape overall import volumes.
What should buyers watch for after the Dhanteras price dip?
Analysts advise monitoring global risk factors—especially US Fed moves and Middle‑East developments—as they can quickly swing sentiment. A stable macro environment could see prices inch back up, while renewed geopolitical spikes might trigger another correction.
