Gold and Silver Prices Fall Ahead of Diwali 2026: Why Are Rates Dropping During Festive Season Instead of Rising?

October 23, 2026

Gold and silver prices are falling just days before Dhanteras and Diwali. This is the time when many families head to jewellery shops to buy gold coins, ornaments and silver items. Prices often attract attention during the festive season because demand usually picks up. But this year, buyers are seeing a different trend.

Both metals have taken a hit in the market. Gold prices dropped again on October 23, while silver continued its fall. The decline comes at a time when many people are preparing for festive purchases.

Gold and Silver Prices: Before and After the Fall

According to Goodreturns, gold prices fell across major Indian cities on Friday. Here is how the rates changed from October 22 to October 23, 2026.

Silver prices also fell on Friday.

These are indicative rates and can vary by city and jeweller. Making charges and taxes can also affect the final bill.

Why Are Gold and Silver Prices Falling Before Diwali?

The main reason is the pressure coming from global markets. Rising crude oil prices and tensions in West Asia have raised concerns about inflation. This has also affected expectations about what the US Federal Reserve may do with interest rates.

When investors expect interest rates to stay high, gold can lose some of its appeal. Unlike bank deposits and bonds, gold does not pay interest. Some investors may therefore move their money into other assets.

Gold prices have also come under pressure as investors sell after earlier gains. Silver is facing similar pressure, but there is another factor at play. Silver is used in industries, including technology, so concerns about economic growth and falling technology stocks can affect its price as well.

The weakness in international markets is now being felt in India too. Even though festive buying usually increases demand, local purchases cannot always offset a sharp fall in global prices.

Why Festive Demand Is Not Pushing Prices Up

Dhanteras and Diwali are considered auspicious occasions for buying gold and silver. Many families buy jewellery or coins during this period, while others make purchases for weddings and family functions.

So why are prices falling when demand is expected to rise?

The answer is that festive demand is only one part of the picture. Gold and silver prices are also influenced by international rates, the rupee’s value against the US dollar and investor activity. When global prices fall sharply, the impact can outweigh the usual seasonal demand in India.

This is why a festive season does not always mean higher gold prices. Buyers may actually find lower rates when international markets are under pressure.

Will Gold and Silver Become Cheaper Before Diwali?

The recent fall may come as welcome news for people planning to buy jewellery. However, it is too early to say whether prices will drop further before Diwali.

Much will depend on crude oil prices, the US interest rate outlook and movements in international markets. A change in any of these factors could push gold and silver prices up or down again.

For buyers, checking the latest rates before visiting a jeweller is important. The price displayed for gold is not always the final amount paid, as jewellery bills also include making charges and applicable taxes.

For now, the usual festive-season trend has taken an unexpected turn. Instead of rising ahead of Dhanteras and Diwali, gold and silver prices are falling as global market pressures outweigh the boost expected from festive demand.