Amid Dhanteras gold prices skyrocket, economist warn of 'something big'

Gold prices have surged across major cities in India, driving the festive demand of Dhanteras 2025. As of October 18, the price of 24-carat gold across major Indian cities has reached a record Rs 1,34,800 per 10 grams. It then simmered down with varying rates across cities at Mumbai, Rs 1,32,770, New Delhi at Rs 1,32,920, and Chennai at Rs 1,33,090. Similarly, the price for 22-carat gold ranged from Rs 1,21,700 to Rs 1,22,000.

Experts are predicting a further surge, driven by the continued geopolitical tension. Globally, gold prices have hit their best week in five years. The price rise is driven by the central bank purchasing, fear of rate cuts by US Federal Reserve, and massive ETF (exchange-traded funds) inflows.

Peter Schiff, the Chief Economic and Global strategist at Euro Pacific Asset Management, said “this is getting serious” and “something big is about to happen”. The persistent trade friction between US-China and speculation of further rate cuts by the US Federal Reserve, along with the ongoing surge in gold prices to historic highs in October 2025 seen as indicators of looming risks.

Global fear drives the demand for a hedge

The latest surge in gold prices reflects more than festive enthusiasm, like a deep-seated economic anxiety. Key economic warnings include the growing fiscal crisis among the wealthy nations in 2025, and the overheated AI stock market, which economists warn could trigger a global market crash like the dotcom bubble crash of 2000.

With global inflation pressure and bond yields fluctuating, the demand for gold as a hedge against rising prices remains bullish. Popular predictions by Goldman Sachs, HSBC and ANZ project gold to reach $4,000- $5,000 per ounce in 2025 to 2026. As a result of the global bullion demand, Indian cultural values mirror the financial caution. Dhanteras have long been associated with wealth and auspiciousness, and are pushing buyers towards jewellery, gold coins and digital gold despite the skyrocketing prices.