The surge came as investors rushed to gold as a safe asset amid global uncertainty. Gold prices in India have already risen 61% this year and are now inching toward the ₹1.5–2 lakh mark per 10 grams, making it one of the strongest-performing assets of 2025.
( Image credit : AI generated | Gold prices in India touched record highs on October 21 )
Gold rates surge across all carat variants
Prices of 22-carat and 18-carat gold also followed the upward trend. On October 21, the 10-gram rate for 22-carat gold rose by ₹1,900 to ₹1,21,700, while the 100-gram price reached ₹12,17,000. For 18-carat gold, the 10-gram rate increased by ₹1,560 to ₹99,580, and 100 grams surged to ₹9,95,800.
The cheapest gold stood at ₹13,277 per gram for 24-carat, ₹12,170 per gram for 22-carat, and ₹9,958 per gram for 18-carat.
This rise followed a volatile period earlier in the week. On October 18, gold prices had dropped by ₹19,100 for 100 grams, followed by a decline of ₹1,700 on October 20. Rates remained unchanged on October 19 before the strong rebound on the 21st.
( Image credit : AI generated | Gold prices in India reached their highest levels of the year just before Diwali )
Silver, however, moved in the opposite direction, continuing its decline during the same period.
Gold gains momentum before Muhurat trading
The spike in gold rates coincided with the start of the auspicious Muhurat trading session, which took place between 1:45 pm and 2:45 pm on October 21. Traders and investors traditionally consider this one-hour period during Diwali as a symbol of prosperity and good fortune.
On the Multi Commodity Exchange (MCX), gold with December 2025 expiry closed at ₹1,30,588 per 10 grams, marking a gain of ₹3,580 or 2.82%. Silver with December 2025 expiry also saw a modest increase of ₹1,571, or 1%, to ₹1,58,175 per kilogram.
The surge in domestic demand and festive buying sentiment contributed to the price rally. For many households, the Diwali season remains a preferred time to invest in gold, often seen as both an emotional and financial asset.
Investors shift focus to ETFs and Gold FoFs
As physical gold prices continue to climb, investors are increasingly turning to Exchange Traded Funds (ETFs) and Gold Funds of Funds (FoFs) for more accessible and cost-effective exposure.
A Gold ETF is a mutual fund that invests directly in 99.5% pure gold and mirrors domestic gold prices. Each ETF unit represents approximately 0.01 grams of gold and can be bought or sold on stock exchanges. Some of the leading ETFs in India include Nippon India Gold ETF, SBI Gold ETF, HDFC Gold ETF, and ICICI Prudential Gold ETF.
Gold FoFs, on the other hand, invest in Gold ETFs and are suitable for those without a Demat account. They are SIP-friendly but carry slightly higher expense ratios.
( Image credit : AI generated | Gold prices in India have already risen 61% this year )
Financial experts describe gold ETFs as “digital gold” — liquid, transparent, and free from storage or purity concerns. With prices at record highs, these investment routes are becoming increasingly popular among young and first-time investors.
The recent surge in gold rates has reaffirmed gold’s role as a safe haven for Indian investors. While traditional buyers are paying record prices this festive season, digital gold investments like ETFs and FoFs are gaining traction for their convenience and affordability. With both retail demand and market speculation high, gold continues to shine in India’s financial landscape.