Mumbai | October 17, 2025,The festive spirit of Dhanteras and Diwali 2025 has sent India’s gold market into a glittering rally, with gold price premiums surging to their highest levels in more than 10 years. A perfect blend of cultural sentiment, strong retail demand, and global market dynamics has driven prices sharply upward, signaling the country’s deep-rooted love for the precious metal.

 Gold Prices Surge Amid Festive Buying

According to bullion dealers, Indian gold prices are now trading at a premium of $15–$18 per ounce over international spot prices — the highest since 2012. The jump comes as jewelers and retail buyers rush to purchase gold coins, ornaments, and bars ahead of the Dhanteras and Diwali festivities.

Retail outlets across Mumbai, Delhi, Ahmedabad, and Chennai have reported a 25–30% surge in footfall compared to last year. With wedding season also around the corner, the demand for gold jewelry is expected to remain strong throughout November and December.

“This is the strongest Diwali season in a decade. Consumers are buying despite high prices, reflecting emotional and investment-driven sentiment,” said Prithviraj Kothari, President of the India Bullion and Jewellers Association (IBJA).

 Why Are Gold Premiums Rising?

1. Festive and Wedding Season Demand:

Dhanteras and Diwali are traditionally considered auspicious for buying gold. Combined with the upcoming wedding season, the demand has soared.

2. Limited Imports:

With the Indian Rupee fluctuating and import duties remaining high, dealers are facing a tight supply situation, leading to a spike in local premiums.

3. Global Price Trends:

On the international front, gold prices are trading near $2,400 per ounce, driven by geopolitical uncertainties, central bank buying, and inflation hedging.

4. Rising Investment Interest:

Beyond jewelry, there has been a rise in digital gold, sovereign gold bonds, and gold ETFs, signaling broader investment appeal among young Indians.

 Indian Gold Market Outlook for 2025–26

Experts predict that gold demand will remain strong well into 2026, supported by high liquidity, festive sentiment, and global economic uncertainties. Analysts at Motilal Oswal Financial Services expect gold to trade in the range of ₹70,000–₹74,000 per 10 grams by early 2026.

Moreover, as central banks worldwide continue to diversify reserves away from the US dollar, gold remains a preferred safe-haven asset.

Jewelers See Record Sales

Leading jewelry brands such as Tanishq, Kalyan Jewellers, and Malabar Gold are witnessing record-breaking pre-Diwali sales. Many stores have extended operating hours, introduced festival discounts, and launched special gold coin offers to attract buyers.

Digital platforms like Paytm Gold and PhonePe Gold have also reported a surge in small-ticket gold investments, highlighting India’s shift toward digital asset accumulation.

 Analysts’ Take

“The premium levels indicate that physical demand has significantly outpaced supply. This is a clear reflection of the robust consumer sentiment and India’s continued status as the world’s second-largest gold consumer,” said Surendra Mehta, a gold analyst and market expert.

With rising geopolitical risks and inflationary pressures, experts believe that gold could continue to outperform traditional assets like equities and bonds over the next few quarters.

Key Highlights

Gold Premium: $15–$18 per ounce (highest since 2012)

Retail Demand: Up 30% YoY during Dhanteras and Diwali

Domestic Gold Price: Around ₹72,000 per 10 grams

Top Buyers: Mumbai, Delhi, Chennai, Ahmedabad

Investment Trend: Digital gold and ETFs gaining popularity

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Conclusion

As India celebrates Dhanteras and Diwali 2025, gold once again proves to be more than a symbol of prosperity; it’s a reflection of faith, wealth, security, and cultural heritage. With prices and premiums at record highs, the yellow metal continues to shine brightly in the hearts and portfolios of millions of Indians.