Precious metals poised for strong rally ahead of Dhanteras festival

Precious metals are expected to stage a significant recovery over the coming months, according to market analysts tracking seasonal demand patterns ahead of Dhanteras, the auspicious festival traditionally associated with gold and silver purchases across India.

Broking firm Axis Direct has outlined an optimistic outlook for gold, projecting an 18% appreciation by next Dhanteras with target price levels ranging from ₹165,000 to ₹171,000 per 10 grams. The forecast reflects confidence in continued investment demand during the festive season, a period that historically drives precious metals purchases among Indian households.

Analysts attribute the potential upside to a combination of factors, including current price corrections that are expected to attract fresh buying interest. The temporary weakness in gold and silver valuations has created a favorable entry point for investors ahead of the anticipated seasonal surge in demand.

The Dhanteras festival, which marks the beginning of Diwali celebrations, has long been considered an auspicious occasion for acquiring gold and silver in India. Market participants expect this cultural tradition to continue supporting prices through the festive period, supported by both retail investment demand and broader macroeconomic considerations affecting precious metals valuations globally.