The gold price today in India is Rs 11,080 for 24 karat 1 gram. The same time last year, it was Rs 7,633. Even the 24-carat 10-gram gold price has increased by 50% over the previous year. The MCX Spot gold price in September 2024 was Rs 73,000, which has now reached Rs 1,09,388 for 10 grams 24 carat.
The price of gold in the global market is $3,700, which is double what it was in September 2023.
With the gold price up over 40% in 12 months, will there be buyers this time? What’s the consumer sentiment? With the festive season approaching, would Indians rush to buy gold at astronomically high prices?
Indians have a long-standing passion for gold. No more, it’s China, now India is the largest consumer of gold in the world. Indian families are estimated to hold around 24,000 tonnes of gold, exceeding the total gold holdings of global central banks.
Gold, particularly in jewellery and coin form, is traditionally viewed as auspicious in India and is often purchased to meet long-term financial goals, such as funding children’s weddings.
But, when do Indians buy gold in bulk? One-third of India’s annual gold sales is during weddings, as well as the Dussehra and Diwali seasons.
And, India is heading into these festive months, with the gold prices at record highs.
2025 has been a sparkling year for gold. So far this year, the gold price has already increased by over 40%.
Gold Buying Trends 2025
For the first time, gold prices in India have exceeded Rs 1 lakh per ten grams, setting the stage for an interesting festive season in 2025.
The CEO of Titan’s Jewellery division noted that demand has been affected in the price range of Rs 50,000 to Rs 1 lakh, while the premium and luxury segments continue to perform strongly.
According to the World Gold Council’s latest report, Gold demand in India is showing signs of a pickup with the onset of the festive season, led primarily by a surge in physical investment demand for bars and coins, according to market reports and anecdotal evidence from trade channels.
So, how’s India preparing to meet gold demand in the October-November-December quarter?
India’s Gold Position
India is a major consumer of gold and also a big importer of the yellow metal. Despite high prices, India’s gold imports rose to a multi-month high in August. It could be to meet the domestic demand in the upcoming festive season, among other reasons.
Meanwhile, India’s gold reserves have climbed to a record 880 tonnes. Gold now accounts for 12.5% of India’s foreign exchange reserves as of the end of August, up from 9% a year earlier. How much gold Indians end up buying in the last three months of 2025 remains to be seen.
Why are Gold Prices Rising
The price of gold in India is influenced largely by global factors. Global conditions started changing in 2022 when Russia invaded Ukraine. Then came the Middle-East tensions involving Iran-Israel-Palestine. With geopolitics taking front seat, the fear and uncertainty led central banks to start buying more gold, boosting its price.
Central banks have not stopped buying gold, as per the last estimates. Also, the US debt burden is not going to go away anytime soon, which will continue to put pressure on the dollar index and support the gold price.
Gold prices continue to rise in 2025 after Trump’s tariffs threatened the trade relationship of the US with other countries.
The US Fed, the world’s central bank, initiated the rate cut campaign in September. In a falling interest rate environment, riskier assets such as equities flourish, but gold may still find support if the risk appetite shifts.