A GILDED RALLY

India's love for the yellow metal shines brighter than ever despite record prices

- NACHIKET KELKAR

Each year on Dhanteras, the first day of the five-day Diwali festival, Prashant buys a small quantity of gold—10 grams until recently, and just 5 grams this year—as a token of good fortune and an investment for his daughter’s wedding.

He refuses to break the tradition despite the prohibitive prices. “Gold prices have been going up every year, and I feel they'll rise more. It's difficult to buy large quantities, so I pick up small amounts whenever I can,” he says.

Prashant's sentiment is shared by millions of Indians who see gold as more than a metal—it is security, legacy and auspiciousness rolled into one. Even at all-time highs, the country’s fascination with gold shows no sign of fading.

Over the past year, gold prices have been on an unprecedented gallop. In the domestic market, they hit ₹1,34,800 for 10 grams on October 17, after notching 48 all-time highs in 2025 alone. Internationally, gold broke past $4,300 an ounce earlier this month—up more than 50 per cent since January. It was the strongest annual performance since 1979, when prices more than doubled.

It has been a remarkable run. The jump from $3,500 to $4,000 an ounce took just 36 days, whereas earlier $500 increments typically took three years. In India, the surge is sharper—nearly 66 per cent in a year till Diwali—amplified by the rupee's 3.8 per cent depreciation against the dollar.

The price shock has not stopped festive buying. Jewellers say customers are purchasing smaller quantities but spending more overall. “While we expect around 20-25 per cent value growth in jewellery sales compared to last year, there has been a 12-15 per cent dip in volumes. Buyers are prioritising design and emotional value over quantity,” says Suvankar Sen, managing director and CEO of Senco Gold and Diamonds.