Gold Prices Hit Record High Ahead of Diwali and Wedding Season: Buyers Shift Towards Bullion Investments
Gold prices have soared to an all-time high just days before Diwali and the peak wedding season, with a noticeable shift in consumer preference from traditional jewellery to solid bullion such as coins and bars. On Thursday, the price of gold on the Multi Commodity Exchange (MCX) touched a historic ₹1,28,395 per 10 grams, marking an unprecedented surge in the domestic bullion market.
According to traders, the continuous rise in gold rates has led many buyers to view the yellow metal as a long-term investment rather than a festive luxury purchase. “Gold prices are increasing every day, and people are looking at it as a secure investment option. Many customers prefer coins and bars now because they offer higher resale value and purity,” said a leading bullion trader from Mumbai’s Zaveri Bazaar.
Festive Demand Meets Investment Interest
The upcoming Diwali and wedding season traditionally fuel strong demand for gold in India. However, this year’s record prices have prompted a cautious yet strategic buying trend. Instead of heavy jewellery purchases, consumers are turning to smaller denominations of bullion, aiming to safeguard their wealth amid global economic uncertainties.
Analysts attribute the rally in gold prices to multiple factors — including global geopolitical tensions, a weak rupee, and rising investor demand for safe-haven assets. “With uncertainty in global markets and expectations of a prolonged high-interest rate environment, investors are moving towards gold for stability,” said a market analyst.
Changing Consumer Behavior
Jewellers across major Indian cities report a decline in demand for elaborate gold ornaments, offset by a surge in coin and bar sales. Buyers, especially millennials and young investors, are increasingly drawn to gold’s dual appeal — as both a cultural symbol and a reliable asset.
“People are still buying gold for Diwali, but their mindset has changed. They’re opting for 10-gram bars or 24K coins rather than heavy jewellery. It’s a practical decision — they get purity, liquidity, and investment value,” explained a jeweller from Chennai.
Outlook for Gold Prices
Experts believe gold could maintain its upward momentum through the festive season, with demand remaining resilient. If global inflationary pressures persist and the dollar weakens further, domestic prices may continue to test new highs.
Key Takeaways
- MCX Gold Price: ₹1,28,395 per 10 grams — highest on record.
- Trend: Rising preference for coins and bars over jewellery.
- Reason: Safe-haven demand amid global uncertainties and a weak rupee.
- Festive Impact: Moderate jewellery sales but robust bullion buying.
As India prepares to celebrate Diwali — the festival of wealth and prosperity — gold continues to glitter brighter than ever, not just as an ornament but as a symbol of financial security and long-term stability.