Gold and silver prices may see limited upside ahead of Diwali 2026, with a commodity market expert projecting gold prices to reach Rs 1.5 lakh per 10 grams and silver prices to touch Rs 2.2 lakh-Rs 2.3 lakh per kg. However, factors such as rising interest rates, inflation and increased investor interest in bonds could limit gains in precious metals.
According to a report by Business Today published on October 17, commodity expert Anuj Gupta shared his outlook on gold and silver prices ahead of the festive season, when demand for precious metals typically attracts increased attention from buyers and investors.
The outlook comes amid weak momentum in the precious metals market. Gold has gained around 9% this year, while silver has declined nearly 9%, highlighting the differing performance of the two metals.
Gold Price Outlook: Can Rates Touch Rs 1.5 Lakh Before Diwali?
Gold prices could move towards Rs 1.5 lakh per 10 grams by Diwali, according to Gupta’s assessment. The expert expects the metal to see some support from festive buying, although the possibility of a sharp rally remains limited.
Interest rates and the attractiveness of alternative investments are among the key factors influencing gold prices. When bond yields and returns on interest-bearing instruments rise, investors may shift some funds away from gold, which does not generate regular income.
Inflation and broader market conditions could also influence the direction of gold prices in the coming weeks. While festive demand may provide some support, investors will be watching global economic developments and interest rate trends for clearer signals.
Silver Price Outlook: Expert Sees Rs 2.3 Lakh Per Kg
Silver prices could rise to Rs 2.2 lakh-Rs 2.3 lakh per kg ahead of Diwali, according to Gupta’s forecast. However, the metal faces additional pressure from its industrial demand outlook.
Unlike gold, silver has substantial industrial applications, making its prices sensitive to changes in manufacturing activity and demand from key industries.
Weakness in industrial demand, including concerns about demand from China’s solar industry, could weigh on silver prices. This may restrict the metal’s ability to sustain a strong rally despite increased festive buying.
Why Gold and Silver Prices May See Limited Upside
Several factors could influence the movement of precious metal prices ahead of Diwali.
1. Rising interest rates: Higher interest rates can make bonds and other income-generating investments more attractive compared with gold and silver.
2. Growing interest in bonds: A shift in investor preference towards bonds and Treasury instruments could limit fresh investment demand for precious metals.
3. Industrial demand concerns: Silver may face additional pressure if industrial consumption remains weak, particularly in sectors such as solar energy.
4. Festive buying: Demand for jewellery, coins and other precious metal products during the festive season could offer some support to domestic prices, although it may not be enough to trigger a major rally.
What Should Buyers Watch Ahead of Diwali?
Consumers planning to purchase gold jewellery or silver products during Dhanteras and Diwali should keep an eye on daily prices, local premiums and applicable making charges.
Investors, meanwhile, should distinguish between short-term price forecasts and their longer-term financial objectives. Gold and silver can experience considerable volatility, and expert price targets are estimates rather than guaranteed outcomes.
Overall, the outlook suggests that gold could approach Rs 1.5 lakh per 10 grams and silver could move towards Rs 2.3 lakh per kg by Diwali. However, the extent of any rally will depend on interest rate trends, investment flows, industrial demand and the strength of festive buying.