Gold and Silver to Maintain Strong Demand During Diwali Despite Record-High Prices: Report

New Delhi — Despite gold prices soaring to record highs, festive and cultural traditions are expected to keep demand resilient this Diwali season, while silver’s industrial importance could push its price beyond $50 per ounce, according to a new report.

The report by MP Financial Advisory Services stated that although gold may not repeat its exceptional year-to-date (YTD) performance in 2025, its long-term upward trend remains intact.

“We believe that while gold may not replicate its stellar YTD 2025 performance, its upward trajectory is far from over. The rise has entered a phase of structural endurance rather than speculative exuberance,” the consultancy said.

Silver, on the other hand, is benefiting from robust industrial demand and could surpass the $50 mark, driven by its applications in solar panels, electronics, and electric mobility sectors.

The report highlighted that gold and silver buying remains buoyant this festive season, even as consumers adapt to higher prices by altering their purchasing habits. Many are opting for lighter, lower-carat jewellery, participating in exchange or old-gold programmes, and exploring digital gold and sovereign gold bonds.

Gold prices have nearly doubled from around $1,900 per ounce in November 2022 to nearly $3,850 by October 2025, with Indian domestic prices crossing ?1 lakh per 10 grams. Silver has climbed from $24 to about $47 per ounce in the same period, the report noted.

The surge in gold prices has been driven by expectations of U.S. interest rate cuts, strong central-bank purchases, and industrial restocking across solar and electronics supply chains. Gold continues to act as a safe-haven asset amid global economic uncertainty, while silver’s growth reflects the revival of industrial activity.

As of June, the United States remains the world’s largest official holder of gold reserves at 8,133 tonnes, followed by Germany (3,350 tonnes). Among emerging economies, China (2,299 tonnes), India (880 tonnes), and Turkey (635 tonnes) have all increased their gold holdings — a move analysts say reflects a gradual diversification away from the U.S. dollar.

With inputs from IANS