THE TWIN BULLION BOOM

Gold, silver surge to record highs, reaffirming their old allure and also their value as a safe hedge in rough times for investors, central banks

- M.G. ARUN

ALL THAT GLITTERS IN INDIA THIS FESTIVE SEASON IS NOT JUST GOLD— SILVER TOO IS STEALING SOME OF THE SHINE.

Both precious metals have surged in recent weeks, creating ripples across futures markets and retail counters. Gold, the traditional fa- vourite, has crossed the mark of Rs 1 lakh per 10 grams ahead of Dussehra, Dhanteras and Diwali, festivals long associated with auspicious purchases. In fact, nearly a third of India’s annual gold sales take place in the October-December quarter.

On September 16, prices for 24-karat gold touched Rs 1.12 lakh per 10 grams in Delhi, driven by global uncertainty and geopolitical tensions that reinforced its status as a safe-haven asset. But on September 18, the US Federal Reserve cut interest rates by 25 basis points, and a stronger dollar alongside a brighter outlook for equities nudged gold prices down to Rs 1.11 lakh per 10 grams the following day. Prices have since risen again, touching Rs 1.13 lakh on September 22. Some analysts predict prices could reach Rs 1.25 lakh in the first half of 2026.

Silver has also staged a remarkable rally, with domestic prices climbing to Rs 1.38 lakh per kilogram on September 22, buoyed by global cues and rising local demand.

INDIA'S GRAND APPETITE

India is the world's second-largest consumer of gold after China, with annual demand of 700-800 tonnes. Nearly two-thirds is crafted into jewellery, while the rest is held in coins and bars. The country imports about 90 per cent of its requirement, mainly from Australia, Switzerland and the UK.