Diwali 2026: Gold and silver have traditionally occupied a special place in Indian households, particularly during Diwali, when buying precious metals is associated with prosperity and new beginnings.
But beyond their festive significance, the two metals also attract investors looking to diversify portfolios, preserve wealth and hedge against economic uncertainty. Their performance, however, is shaped by a complex mix of global interest rates, inflation, currency movements, geopolitical developments and investment demand.
After a volatile year for bullion, investors will be watching these factors closely as they assess whether gold or silver offers a more attractive opportunity in the coming months. Religare Broking's Diwali 2026 report outlines accumulation zones, price targets and key support levels for both metals.
Gold witnessed significant volatility in 2026, touching a record high of approximately $5,595 per ounce in January before undergoing a sharp correction. The initial rally was supported by geopolitical uncertainty, strong investment demand and expectations of monetary easing. However, profit-taking, liquidation of leveraged positions, rising bond yields and a strengthening US dollar subsequently weighed on prices.
The US Federal Reserve's policy stance remains an important factor. The central bank raised its benchmark interest rate by 25 basis points in September 2026, taking the target range to 3.75%-4%, before holding rates steady at its October meeting. Two policymakers dissented in favour of another 25-basis-point hike, reflecting concerns over persistent inflation.