Ahead of Diwali, the downward trend in gold and silver prices continues. According to the India Bullion and Jewellers Association (IBJA), 24-carat gold (10 grams) dropped by ₹2,530 today to settle at ₹1.38 lakh. One kilogram of silver is trading lower by ₹1,372 at ₹1.80 lakh. On Friday, gold was priced at ₹1.40 lakh per 10 grams and silver at ₹1.81 lakh per kg.
How Much Decline in October?
Gold: ₹1.48 lakh per 10 grams on October 1, 2026, marking a drop of around ₹8,084.
Silver: ₹2.20 lakh per kg on October 1, marking a drop of around ₹39,485.
Full-Year Price Fluctuations
Silver: Stood at ₹2.30 lakh on December 31, 2025, hitting an all-time high of ₹3.86 lakh on January 29. Since then, it has become cheaper by ₹2.06 lakh.
Gold: Stood at ₹1.33 lakh on December 31, 2025, peaking at ₹1.76 lakh on January 29. Since then, it has become cheaper by ₹38,000.
Why Did Gold Get Cheaper? (3 Reasons)
Profit Booking at Higher Levels: Large investors booked profits after prices surged significantly ahead of the festive season.
Stronger Dollar: The US dollar and bond yields strengthened in international markets, pulling gold prices down.
Retail Buyers Holding Back: Ordinary buyers scaled back purchases temporarily after witnessing high prices.
Why Did Silver Get Cheaper? (3 Reasons)
Lower Demand from Factories: Industrial demand dropped across the solar and electronics sectors.
Selling Pressure: Major traders suddenly offloaded silver amid fluctuations in the equity and futures markets.
Following Gold's Trajectory: Gold and silver often move in tandem, so selling in silver was triggered as soon as gold prices fell.
Will the Decline Continue Long-Term? Expert Advice
According to commodity expert Ajay Kedia, buy gold and silver in installments: purchase a portion now and another portion at intervals of 15 to 20 days. For investments, look at a horizon of 6 months to 1 year instead of just 1 to 2 months.
Why Do Gold Prices Vary Across Different Cities? (4 Reasons)
Transportation and Security Costs: Prices can increase over longer distances.
Volume of Purchases: South India accounts for around 40% of consumption, leading to large-scale buying, though retail discount benefits remain limited.
Local Jewelry Associations: Rates are determined based on local supply and demand dynamics.
Old Stock and Purchase Cost: A jeweler's acquisition cost dictates their selling price.
2 Essential Things to Check When Buying Gold
Only buy certified gold bearing the BIS hallmark. The hallmark code is alphanumeric (e.g., AZ4524), which indicates the purity (karat) of the gold.
Cross-check the pricing. Verify the exact weight and the day's rate from reliable sources like the IBJA website. Rates vary for 24, 22, and 18-karat gold.
4 Household Methods to Identify Real Silver
Magnet Test: Real silver is not attracted to a magnet.Ice Test: Ice melts much faster when placed on genuine silver.Smell Test: Real silver is odorless, whereas fake silver may carry a copper-like smell.Cloth Test: Rubbing it with a white cloth should leave a black mark, which indicates genuine silver.
