Have Gold Prices Reached New Heights on Dhanteras Due to Festive Demand?
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Synopsis
As Diwali nears, gold prices are hitting unprecedented heights. With global uncertainties driving demand, buyers are eager to secure their investments. Experts forecast significant boosts in jewellery sales this Dhanteras, as consumers pivot to innovative gold options. Will this trend continue to rise as the festive season unfolds?
Key Takeaways
- Gold prices have reached a new high of Rs 1,30,874.
- Surge in prices attributed to global uncertainties.
- Jewellery sales expected to rise by 12-15%.
- Gold has delivered 63% returns since last Dhanteras.
- Trade tensions are boosting gold demand.
Mumbai, Oct 18 (NationPress) With Diwali just around the corner, the price of gold has soared to a new high, driven by rising global uncertainties such as trade tensions and weakening macroeconomic indicators, leading to a significant flight to safety.
In the previous month, gold prices surged by Rs 20,073 per 10 grams, marking an impressive 18 percent increase, which has created a palpable sense of FOMO (fear of missing out) among buyers. Every dip in price has been met with fervent purchasing, especially with Diwali approaching. Compared to last Dhanteras, gold has shown remarkable gains for investors, achieving a record high.
The latest data from the India Bullion and Jewellers Association (IBJA) indicates that the price for 24-carat gold (10 grams) reached a historic high of Rs 1,30,874 on Friday, although intra-day trading concluded at Rs 129,584 due to the depreciation of the rupee against the dollar.
IBJA reports that bullion prices have been on a steady incline throughout the week, rising by nearly Rs 1,000 daily.
Analysts predict that gold jewellery sales might rise by 12-15 percent this Dhanteras season, with consumers leaning towards lighter, lower-karat designs, investment-quality pieces, hallmark-certified gold coins, digital gold, and sovereign gold bonds.
According to a report from Ventura Securities, the surge in gold prices is fueled by dovish signals from the US Federal Reserve, inflows into ETFs, and purchases by central banks.
Since last Dhanteras, gold has yielded returns of about 63 percent in rupee terms and 53 percent in dollar terms, with projections suggesting a potential rally towards Rs 1.5 lakh per 10 grams by 2026.
Gold prices have skyrocketed since March 2025, jumping from $3,000 an ounce to around $4,254. In India, prices have risen from Rs 78,840 per 10 grams on Dhanteras 2024 to the current rate of Rs 128,200.
Trade tensions between the United States and China have escalated, particularly after China announced stricter export controls on rare earth metals and magnets. The United States has also imposed an additional 100 percent tariff on Chinese imports, compounding the existing 30 percent tariff, which has further increased the demand for gold.
Point of View
The current surge in gold prices reflects broader economic uncertainties and consumer behavior during festive seasons. As we navigate through this landscape, it's crucial for consumers to make informed decisions while investing in gold. NationPress remains committed to delivering insights that empower readers to understand market trends.
NationPress
18/10/2025
Frequently Asked Questions
Why are gold prices increasing?
Gold prices are rising due to global uncertainties, trade tensions, and increased demand for safe-haven assets.
What is the current rate for 24-carat gold?
As of now, the price of 24-carat gold is approximately Rs 1,30,874 for 10 grams.
How much have gold prices increased since last Dhanteras?
Gold prices have increased by around 63% in rupee terms since last Dhanteras.
What are consumers preferring this Dhanteras?
Consumers are showing a preference for lighter, lower-karat gold designs and investment-grade gold products.
What are the factors driving gold demand?
Factors include dovish signals from the US Federal Reserve, ETF inflows, and purchases by central banks.
