Gold Touches Rs 1.5 Lakh per 10 Grams in Delhi as Festive Buying Builds Ahead of Dussehra

Gold prices in the national capital climbed Rs 400 on Monday to around Rs 1.5 lakh per 10 grams, lifted by festive-season buying on the eve of Dussehra and supportive global cues. Silver held steady for a second straight session at elevated levels above Rs 2.1 lakh per kilogram as retail buyers returned to jewellery markets across the country.

The move extends an extraordinary year for bullion. Gold in India has risen more than 25 per cent since Dussehra last year, while silver has done even better, returning roughly 45 per cent over the same period. The rally has been driven by a combination of global central bank buying, geopolitical uncertainty and, closer to home, a weaker rupee that amplifies international price moves for Indian buyers.

Festive demand returns despite record prices

What has surprised bullion dealers this season is that physical demand has improved even at these price levels. Domestic gold traded at a premium to the landed international price last week for the first time in more than three months, a classic sign that jewellery showrooms and investment buyers are absorbing supply rather than waiting for a correction. A dip in prices earlier in the month appears to have drawn hesitant buyers off the sidelines just in time for the Dussehra-to-Diwali stretch, traditionally the heaviest gold-buying weeks of the Indian calendar.

With Diwali falling in early November this year, jewellers are counting on an unusually long festive runway. Dealers say buying has tilted towards lighter-weight jewellery and coins, with many households trimming grammage rather than skipping the purchase altogether, a pattern that has repeated in each leg of the multi-year bull run.

What it means for buyers

• Those buying for weddings or tradition should note that premiums over international prices tend to widen as Diwali approaches, so staggered purchases can average out costs.

• For investors, silver's outperformance cuts both ways: it has delivered bigger gains but historically corrects more sharply than gold when the cycle turns.

• Sovereign gold alternatives such as ETFs continue to see inflows from buyers who want price exposure without making charges and storage concerns.

Bullion markets, along with equities and banks, will pause on Tuesday for the Dussehra holiday. If the premium on domestic gold persists after the break, it will confirm that this festive season is translating into genuine offtake rather than mere window shopping at record prices.