New Delhi: As Diwali draws near, gold prices have surged to a new high, driven by growing global uncertainties. Factors like rising trade tensions and weakening economic data have made investors turn to gold as a safe haven, boosting demand just in time for the festive season.
Gold Prices Surge Ahead of Diwali
In the past month, gold prices have risen by Rs 20,073 per 10 grams (an 18 per cent increase), driven by strong festive demand. With Diwali just around the corner, even small dips in prices are met with active buying. Since last Dhanteras, gold has delivered significant gains, reaching record highs and making it a preferred choice for festive investments.
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24-Carat Gold Hits New High Amid Weekly Gains
The price of 24-carat gold (10 grams) touched a fresh high of Rs 1,30,874 on Friday, according to the India Bullion and Jewellers Association (IBJA). However, intra-day trading closed at Rs 1,29,584, impacted by the rupee’s depreciation against the dollar. IBJA data shows that gold prices have been steadily climbing throughout the week, rising by nearly Rs 1,000 per day.
Analysts expect gold jewellery sales to increase 12-15 per cent this Dhanteras season with consumers preferring lighter, lower-karat designs, investment-grade pieces, hallmark-certified gold coins, digital gold and sovereign gold bonds
Dovish signals from the US Federal Reserve, ETF inflows, and central bank purchases are driving the surge in gold, the report from Ventura Securities said.
The gold has generated returns of approximately 63 per cent in rupee terms and 53 per cent in dollar terms since last Dhanteras, and a possible rally towards Rs.1.5 lakh per 10 grams is possible by 2026, the report said. Gold prices have skyrocketed since March 2025, rising from $3,000 an ounce to around $4,254. In India, prices increased from Rs.78,840 per 10 grammes on Dhanteras 2024 to Rs.128,200 currently.
Trade tensions between the United States and China escalated as the latter announced tighter export restrictions on rare earth metals and magnets. Meanwhile, the United States has announced an additional 100 per cent tariff on Chinese imports, on top of the existing 30 per cent, which has boosted demand for gold. (With IANS Inputs)
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