Gold prices dipped slightly in India ahead of Navratri while silver witnessed robust gains, reflecting a mixed performance in precious metals markets as the country’s mostsignificant festive buying season approaches. The complex dynamics reveal how global monetarypolicy, domestic demand patterns, and seasonal factors are shaping precious metals trading.
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Gold Retreats from Recent Highs
Gold prices in India experienced modest declines in the days leading up to Navratri, which begins September 22, 2025. According to Multi Commodity Exchange (MCX) data, 24-carat gold traded at ₹109,900 per 10 grams on September 21, marking a recovery from earlier weekly lows. The precious metal had dropped to ₹109,052 on September 18 before stabilizing.economictimes.
International gold markets mirrored this volatility, with spot gold reaching an all-time high of $3,707.40 before retreating to around $3,668 following the Federal Reserve’s 25 basis point rate cut. The initial euphoria surrounding the Fed’s first rate cut of 2025 quickly faded as the U.S. dollar strengthened unexpectedly, creating headwinds for gold prices.
MCX gold futures for October, 2025 delivery experienced significant fluctuations, opening lower at ₹109,180 before touching weekly lows near ₹108,690. Despite these short-term pullbacks, gold remains up approximately 40% year-to-date.
Silver demonstrated more robust performance than gold, with prices climbing to ₹130,050 per kilogram in Indian markets by mid-September. The white metal has shown particular strength, rising nearly 39% compared to the same period last year.
Industrial demand continues driving silver’s momentum, with strong consumption from solar panels, electric vehicles, and 5G infrastructure offsetting traditional jewelry demand. Silver futures on MCX reached ₹130,096 per kilogram, while international silver touched $42.95 per ounce.
Investment inflows have also supported silver prices, with the metal breaking above $40 per ounce for the first sustained period since 2011. Analysts project silver could target $49-50 per ounce in overseas markets, with domestic prices potentially reaching ₹140,000-150,000 per kilogram.
Festive Demand Dynamics Amid High Prices
The timing of price movements ahead of Navratri presents a mixed scenario for traditional festive buying. While gold’s recent moderation may provide some relief for consumers, prices remain at historically elevated levels that could dampen overall demand.
Gold imports surged to a nine-month high of $5.2 billion in August, representing a 37% month-on-month increase as traders prepared for seasonal demand. However, industry experts anticipate physical demand could decline 10-15% during the festival season due to affordability concerns.
Consumer behavior is adapting to high prices through lighter jewelry purchases, increased exchange transactions, and a shift toward investment products rather than traditional jewelry. The upcoming peak festival period from October through December will test whether cultural purchasing traditions can withstand record-high precious metals prices.