Gold prices witnessed a sharp correction on Dhanteras, falling by ₹2,400 to ₹1,32,400 per 10 grams in the national capital on Saturday, even as jewellery stores across India saw a surge in footfall and record festive sales.
After touching an all-time high of ₹1,34,800 per 10 grams on Friday, prices eased amid profit booking and softer global cues.
Despite the dip, consumer sentiment remained upbeat, with gold and silver purchases estimated to cross ₹60,000 crore during the Dhanteras weekend alone.
In the local bullion market, gold of 99.5 per cent purity also saw a sharp pullback, depreciating by Rs 2,400 to Rs 1,31,800 per 10 grams (inclusive of all taxes). It had touched a lifetime high of Rs 1,34,200 per 10 grams in the previous session.
Prices of gold of 24 karat have risen Rs 51,000 per 10 grams, or 62.65 per cent, compared to Rs 81,400 per 10 grams recorded on Dhanteras last year, which was celebrated on October 29, 2024.
Silver prices have gained Rs 70,300, or 70.51 per cent, from Rs 99,700 per kilogram recorded on last Dhanteras.
Traders attributed the correction in bullion prices to weak global cues as investors booked profits after a steep rally.
"The festive fervour of Dhanteras upheld its sheen with a robust turnaround by consumers to invest in the yellow metal. Irrespective of the sky-high price of gold, favourable economic conditions and the GST reforms, there has been a tremendous response," Colin Shah, Managing Director of Kama Jewelry, said.
He noted that a significant demand was seen among buyers for light-weight jewellery, especially in the younger age groups. Parallelly, bullion witnessed a major traction this season given the backdrop of soaring gold prices.
"A niche demand for heavy jewellery for the upcoming winter wedding season was observed, where buyers looked forward to locking in the current rate given the rapidly increasing price of yellow metal.
"Overall, it was a phenomenal response this Dhanteras with an overall festive spike of 15 per cent to 18 per cent as compared to last year," Shah added.
Dhanteras sales touch ₹1 lakh crore, say traders
According to the Confederation of All India Traders (CAIT), consumers spent approximately ₹1 lakh crore this Dhanteras across sectors, with gold and silver sales alone contributing ₹60,000 crore — a 25% jump from last year.
Delhi’s bullion markets alone crossed ₹10,000 crore in sales, according to Pankaj Arora, President of CAIT’s jewellery chapter.
In international markets, spot gold hit an all-time high of $4,379.44 per ounce on Friday before slipping 1.76% to close at $4,249.98 as investors locked in profits.
Spot silver also fell 4.36% to settle at $51.90 per ounce after peaking at $54.49.
While heavy jewellery purchases saw some moderation, lighter ornaments, coins, and bars witnessed robust demand.
"Despite the lower quantity, the sales value in monetary terms saw an approx. 12-18 per cent surge. Consumers have adapted to buying design-rich ornaments and lightweight buying with smaller items like gold coins due to record high prices," N S Ramaswamy, Head of Commodities & CRM, Ventura, said.
