Gold Prices Hit Record: Rs 1.30 Lakh Before Diwali 2025

Indian's love for Yellow traditional metal is all the vibe before the festival. The ritual of buying gold on Dhanteras shows the cultural respect, but this season, investors are moving towards bullion for Diwali 2025.

Gold prices hit a record again, climbing like never before, Rs 1.30 lakh per 10 grams on MCX futures, a Historical high ever recorded in the domestic market.

This year, the rush for digital gold is higher than for physical gold. Gold remains deeply adore in Indian culture, symbolising wealth, security and prosperity, especially during auspicious occasions like Dhanteras and Diwali.

Why Gold Prices Are Surging Ahead of Diwali 2025

A robust 67% rally sparks this rise year-to-date, due to geopolitical uncertainties, expectations of U.S. Federal Reserve rate cuts and the traditional spike in festive demand. Buyers all over the country are showing a strong preference for investment-grade gold bars and coins over ornamental jewellery. Consumers are eagerly fixing prices before interest rates climb further.

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Mumbai’s Zaveri Bazaar Reports Shift in Gold Buying Patterns

Jewellers in Mumbai's iconic Zaveri Bazaar report a continuous slowdown in jewellery sales in Diwali 2025, but saw a skyrocket in demand for gold bars and coins. Vrishank Jain, owner of Umedlal Tilokchand Zaveri Jewellers, shares that consumers are urgently booking bullion in advance to hedge against inflation and potential price hikes.

Tanishq CEO Ajoy Chawla backed up this trend, quoting "fear of missing out" as a major reason behind sharply rising volumes, especially for coins and bars.

Gold Premiums and Supply Shortages During Festival Season

The demand surge has pushed premiums above official prices to a 10-year high, with dealers quoting up to $25 per ounce premium due to tight supply and high demand. Banks and suppliers are struggling to fulfil the festival season's extreme demand, causing physical gold shortages in various markets.

Meanwhile, the supply crunch has led to a rise in gold smuggling activities. Government agencies have reported 3,005 smuggling cases in fiscal 2024-25, seizing about 2.6 metric tons of illegal gold. With import duty cop-out and escalating domestic prices, high margins, smugglers are rushing to capitalise on the festival fury.

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City-wise Gold Prices: Delhi, Ahmedabad, Jaipur, Mumbai, Bengaluru

Mumbai and Delhi typically show the highest premiums, while cities like Ahmedabad and Jaipur are slightly lower but close to the national level. Bengaluru matches the overall market average near Rs 1,30,000 per 10 grams.

*These prices show 24 karat gold rates as of October 17, 2025, subject to slight vary due to local taxes, making charges and market supply-demand dynamics.

Market experts predict the upward trend in gold prices will continue into 2026, forecasting that prices could reach Rs 1.5 lakh per 10 grams.

Tis growth shows long-lasting role as a safe-haven asset and inflation hedge, supported by geopolitical tensions and anticipated monetary policy easing.

Investors are suggested to track these dynamics closely as gold remains a key component for your portfolio diversification in the upcoming year.

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The Cultural and Investment of Gold During Dhanteras and Diwali

In 2025, the continuing rise in prices of gold in India but the cultural and investment appeal of gold remains unpolished, as the metal continues to be the essence of fortune, wealth, security and prosperity during the most auspicious buying season of the year.

For now, as Dhanteras approaches on October 18, India's gold market remains excited, combining tradition, investment demand and global economic forces to bring a new chapter in the country's everlasting love affair with gold.