Gold Price / Gold may show its true colours on Dhanteras, will it set a record of Rs 1.25 lakh?

Gold Price Increase: The pace of gold and silver prices in the Delhi bullion market in September 2025 has not been seen in any other month this year. The first half of the month has just ended, and during this period, gold prices in the Delhi spot market have increased by 11 percent, while silver prices have increased by about 12 percent. Experts believe that gold prices may see further increases in the second half of the month, especially since Navratri begins on September 22nd, followed by major festivals like Dhanteras and Diwali.

Experts estimate that gold prices in Delhi could reach ₹1.25 lakh per 10 grams by Dhanteras, while silver prices could reach ₹1.50 lakh per kilogram. Gold and silver have also reached record levels in the country's futures market (MCX). In this article, let's understand in detail how much increase is needed for gold and silver to reach their benchmark levels and the reasons behind this.

Current Gold and Silver Prices in Delhi

On Tuesday, September 16, 2025, gold prices in the Delhi bullion market jumped by ₹1,800 to a record high of ₹1,15,100 per 10 grams amid a weak US dollar and rising expectations of an interest rate cut by the Federal Reserve. According to the All India Sarafa Association, gold of 99.5 percent purity also rose by ₹1,800 to an all-time high of ₹1,14,600 per 10 grams (including all taxes). In the previous trading session, gold prices of 99.9 percent and 99.5 percent purity fell by ₹500 each to close at ₹1,13,300 and ₹1,12,800 per 10 grams, respectively.

Silver prices also rose by ₹570 on Tuesday, reaching an all-time high of ₹1,32,870 per kilogram (including all taxes). Silver had closed at ₹1,32,300 per kilogram on Monday.

According to Saumil Gandhi, Senior Analyst (Commodities) at HDFC Securities, a weak dollar and expectations of an interest rate cut by the Federal Reserve have pushed gold and silver prices to new heights. The dollar index is at its lowest level in the last ten weeks, further supporting the prices of precious metals.

How much did the increase in the first half of September?

Gold prices in the Delhi bullion market witnessed a sharp rise in the first half of September 2025. According to data, the price of gold was ₹1,03,670 per 10 grams on the last trading day of August, which increased by ₹11,430 to ₹1,15,100 by September 16, representing an increase of 11.02 percent.

Silver performed even better than gold during this period. Silver prices were at ₹1,19,000 per kilogram on the last trading day of August, and have now risen by ₹13,870 to ₹1,32,870 per kilogram. This represents an increase of 11.65%. Thus, silver has delivered higher returns to investors than gold.

Benchmark record likely by Dhanteras

Currently, the benchmark level for gold in Delhi is estimated at ₹1.25 lakh per 10 grams and for silver at ₹1.50 lakh per kilogram. Given current prices and market momentum, experts believe these levels could be reached by the end of September or Dussehra. However, based on the data:

Gold: To cross the ₹1.25 lakh mark, gold needs a further increase of ₹9,900, or an increase of 8.6%. This rally is possible over the next 15 days, but after reaching record levels, prices may slow down due to profit-booking and reduced demand. Therefore, experts consider Dhanteras and Diwali as the target time.

Silver: Silver needs to rise by ₹17,130, or a 12.89% increase, to reach the ₹1.50 lakh mark. Silver is primarily in demand for industrial use, and currently, prices are rising due to a short supply. Experts believe this target could be achieved within the next month.

Record Levels in the Futures Market

Gold and silver have also reached record levels on the Multi Commodity Exchange (MCX). During Tuesday's trading session, gold reached a record high of ₹1,10,666 per 10 grams, although it remained at ₹1,10,156 by market close. In September, gold prices on the MCX have increased by ₹6,332, or 6%.

Silver reached a record high of ₹130,450 on the MCX during the trading session, but was down to ₹128,820 by the close. Silver prices rose by ₹6,947, or 5.70%, in September. It's clear that the futures market saw a lower rally than the spot market.

Federal Reserve and Other Factors

According to Anuj Gupta, Director of OR Wealth Management, geopolitical tensions, trade uncertainties, and gold purchases by central banks worldwide are the main reasons behind the rise in gold prices. Furthermore, the possibility of an interest rate cut by the US Federal Reserve has weakened the dollar index, supporting gold and silver prices. Gupta says that the Federal Reserve's announcement of an interest rate cut could further boost gold and silver prices in the coming days.