Diwali Gold Buying To Get Costlier As Prices Hit Historic Rs 1.10 Lakh per 10 Grams

Gold prices in India touched an unprecedented Rs 1.10 lakh per 10 grams on Tuesday, marking a historic high as the festive season approaches. The surge comes in line with global trends, where gold is trading near record levels at USD 3,475 per ounce, while silver has also climbed to USD 40 per ounce.

The timing of the rally has left both jewellers and consumers concerned, with Diwali, Dhanteras, and the wedding season just around the corner. Traditionally, this period sees the highest demand for gold in India, as families buy jewellery and coins as part of age-old customs. However, with prices soaring, buyers may have to either scale back purchases or shift toward lighter ornaments and silver.

Analysts point out that the rise is being driven by a weaker US dollar, global economic uncertainty, and increased investor interest in safe-haven assets. According to a report by Axis Mutual Fund, gold and silver have recorded year-on-year gains of 35 to 45 per cent, outperforming most asset classes.

Jewellers across India are already reporting cautious footfall. "Diwali is when families traditionally make big gold purchases. But at these prices, many may delay or cut back," said a jeweller in New Delhi's Karol Bagh market.

Still, industry experts believe that cultural and religious significance will keep gold demand alive, even if buying patterns change. "Even if people reduce volumes, they will not skip buying altogether during Diwali or weddings. Smaller denominations, gold coins, and lightweight jewellery could see more traction," an analyst noted.

As households prepare for the festive season, the record-breaking rally has added a new dimension to Diwali shopping. Whether as jewellery, coins, or an investment hedge, gold's glitter remains undimmed-though it may now come at a heavier price tag.