October 21, 2025

Gold and silver are dazzling buyers this Diwali with bright gains on the Multi Commodity Exchange (MCX). The December gold futures started at Rs 1,28,134 per 10 grams, jumping Rs 1,126 or 0.89%. Silver glittered even more, rising Rs 1,996 or 1.27% to Rs 1,58,600 per kilogram. Why this shine? Strong global cues and busy festive buying at Dhanteras and Diwali have pumped up the demand big time!Internationally, spot gold bounced back after a wild Friday, trading 0.4% higher at $4,263.59 an ounce early Monday. It had tumbled 1.8% on Friday, a sharp fall since May. Still, gold smashed records last week, hitting $4,378.69 briefly, and hitting its best weekly performance since April. U.S. December gold futures jumped 1.5% to $4,275.40 an ounce.Silver also caught a fresh spark, rising 0.5% to $52.08 an ounce after a big drop the previous day.Seasoned factors like ongoing geopolitical tensions, bets on rate cuts, global de-dollarisation, central banks’ buying spree, and big inflows into exchange-traded funds (ETFs) have driven gold up by more than 60% in 2025.What's fuelling this comeback? U.S. President Donald Trump’s recent hint that his planned 100% China tariff might not last and hopes of talks with China’s Xi Jinping have eased trade stress. This made investors feel braver, moving money into riskier assets and cooling safe-haven gold demand a bit.HSBC’s exciting forecast says gold might hit a dazzling $5,000 an ounce by 2026, thanks to rising global risks and new investors jumping in.In India, buyers are choosing coins and bars over jewellery this festival season, adding to the gold fever. The Reserve Bank of India reports that India's gold reserves have crossed the $100 billion mark, a proud first! However, central bank buying slowed in 2025 amid the gold rally.So, what should investors do? Pankaj Pandey from ICICI Direct suggests a balanced approach with 5% in gold and 5% in silver, plus 10% in debt and 80% in Indian stocks. Apurva Sheth of Samco Securities is cautious with silver, recommending 5% allocation and a spread across equity, gold, debt, and cash. Meanwhile, Green Portfolio PMS pushes for a bolder style: 10% gold ETFs and 20% silver ETFs, rest in equities. Nippon India Mutual Fund’s Rupesh Patel plans to keep some gold and silver in the mix as a safety shield amid global market uncertainties.Physical gold rates today also shine bright in major cities: Delhi sees standard 22 carat gold at Rs 95,576 per 8 grams, Mumbai at Rs 94,992, Chennai at Rs 94,800, and Hyderabad at Rs 95,256. Pure 24 carat gold is above Rs 1,02,000 in all these cities.So, this festive season, gold and silver are not just shining ornaments—they are sparkling smart investments. Dive in wisely and add a golden touch to your portfolio! (Disclaimer: Expert views are their own and do not represent The Economic Times.)

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Tags: Gold price, Silver price, Diwali, Mcx, Precious metals, Investment advice,