Dhanteras gold glitters: 'When an asset rises this quickly, it often reflects...', expert cautions investors
Market analyst Alok Jain, founder of Weekend Investing, cautioned that gold’s record-breaking rally may be signaling stress within the global financial system. He warned that when an asset climbs this rapidly, it often points to deeper market imbalances and potential risks in derivative trading.
- Oct 17, 2025,
- Updated Oct 17, 2025 9:34 PM IST
Gold is shining at historic highs just days before Dhanteras and Diwali 2025, as investors flock to safe-haven assets amid mounting global uncertainty. On Friday, October 17, the price of 24K gold stood at Rs 13,277 per gram, 22K gold at Rs 12,170 per gram, and 18K gold at Rs 9,958 per gram, marking an unprecedented rise that reflects both domestic and global market pressures.
Since last Diwali, the yellow metal has dazzled the markets, notching 39 new all-time highs this year alone. Between November 1, 2022, and October 17, 2025, gold prices in India have surged a staggering 158%, rising from Rs 50,441 to Rs 1,30,233 per 10 grams.
This dramatic ascent has been fuelled by a combination of macroeconomic triggers — including fears of a US government shutdown, persistent geopolitical tensions, and expectations of further Federal Reserve rate cuts — all of which have reinforced gold’s position as the world’s preferred store of value.
Market expert Alok Jain, founder of Weekend Investing, highlighted both the bullish momentum and potential risks of such an extraordinary rally. “Gold was at $4,380 this morning — just last week, it was below $4,000. The pace at which this change is happening is phenomenal but concerning. When an asset rises this quickly, it often reflects deeper cracks in the financial system,” he cautioned.
Jain warned that excessive speculative trading in gold and silver derivatives could expose markets to systemic risks. “For every one kilogram of silver physically available, there are nearly 400 kilograms worth of paper contracts being traded. If physical buyers demand delivery, exchanges could face defaults,” he said.
In India, both gold and silver have seen extraordinary gains in just two months — with gold climbing from below ₹1 lakh to over ₹1.3 lakh per 10 grams, and silver jumping from ₹110 to nearly ₹180 per gram in some cities. “Such rapid movements can destabilise the derivatives market. ETFs are now trading at steep premiums, making them risky for short-term investors,” Jain explained.
Jain added that while ETFs and paper gold are convenient, they should not be seen as perfect substitutes for physical assets. “Whenever volatility spikes, ETFs can deviate sharply from the spot price. Investors must tread cautiously.”
Despite the speculative frenzy, gold’s fundamentals remain strong. With the festive season boosting physical demand and central banks continuing to accumulate reserves, analysts expect the rally to sustain in the near term. But experts also warn that such relentless upward movement could trigger corrections — a reminder that even the brightest metal can lose some shine when the markets overheat.
Gold is shining at historic highs just days before Dhanteras and Diwali 2025, as investors flock to safe-haven assets amid mounting global uncertainty. On Friday, October 17, the price of 24K gold stood at Rs 13,277 per gram, 22K gold at Rs 12,170 per gram, and 18K gold at Rs 9,958 per gram, marking an unprecedented rise that reflects both domestic and global market pressures.
Since last Diwali, the yellow metal has dazzled the markets, notching 39 new all-time highs this year alone. Between November 1, 2022, and October 17, 2025, gold prices in India have surged a staggering 158%, rising from Rs 50,441 to Rs 1,30,233 per 10 grams.
This dramatic ascent has been fuelled by a combination of macroeconomic triggers — including fears of a US government shutdown, persistent geopolitical tensions, and expectations of further Federal Reserve rate cuts — all of which have reinforced gold’s position as the world’s preferred store of value.
Market expert Alok Jain, founder of Weekend Investing, highlighted both the bullish momentum and potential risks of such an extraordinary rally. “Gold was at $4,380 this morning — just last week, it was below $4,000. The pace at which this change is happening is phenomenal but concerning. When an asset rises this quickly, it often reflects deeper cracks in the financial system,” he cautioned.
Jain warned that excessive speculative trading in gold and silver derivatives could expose markets to systemic risks. “For every one kilogram of silver physically available, there are nearly 400 kilograms worth of paper contracts being traded. If physical buyers demand delivery, exchanges could face defaults,” he said.
In India, both gold and silver have seen extraordinary gains in just two months — with gold climbing from below ₹1 lakh to over ₹1.3 lakh per 10 grams, and silver jumping from ₹110 to nearly ₹180 per gram in some cities. “Such rapid movements can destabilise the derivatives market. ETFs are now trading at steep premiums, making them risky for short-term investors,” Jain explained.
Jain added that while ETFs and paper gold are convenient, they should not be seen as perfect substitutes for physical assets. “Whenever volatility spikes, ETFs can deviate sharply from the spot price. Investors must tread cautiously.”
Despite the speculative frenzy, gold’s fundamentals remain strong. With the festive season boosting physical demand and central banks continuing to accumulate reserves, analysts expect the rally to sustain in the near term. But experts also warn that such relentless upward movement could trigger corrections — a reminder that even the brightest metal can lose some shine when the markets overheat.