Diwali 2025: Gold prices on a roll this festive season, more glitter ahead?
Gold prices in India: The price movement comes amid heightened expectations of further US interest rate cuts and persistent global economic uncertainties.
- Oct 20, 2025,
- Updated Oct 20, 2025 1:04 PM IST
Gold prices in India rose on Monday with 24-karat gold trading at Rs 13,069 per gram, 22-karat a tRs 11,980, and 18-karat at Rs 9,802 per 10 gm. Globally, spot gold edged up 0.1% to $4,253.33 per ounce, while US gold futures for December delivery rose 1.3% to $4,266.30 per ounce. The price movement comes amid heightened expectations of further US interest rate cuts and persistent global economic uncertainties.
Central banks have continued steady gold purchases, reflecting ongoing demand for safe-haven assets amid geopolitical tensions. Gold has gained over 60% year-to-date, reaching an all-time high of $4,378.69 per ounce last week.
Recent volatility in gold prices has been fuelled by mixed economic signals and policy developments, including comments on China tariffs by US President Donald Trump and upcoming US-China trade talks. Investors are closely monitoring US inflation data, with the core Consumer Price Index expected at 3.1% for September.
Strong central bank purchases and investment flows into gold have pushed exchange-traded funds (ETFs) to trade at substantial premiums over spot prices.
In India, the festive season is shaping buyers' preferences, with a shift toward investment-oriented purchases. While gold buying has been traditionally linked to festivals and occasions such as Dhanteras, demand is increasingly driven by investment motives.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, "With momentum staying firmly bullish, gold is likely to remain elevated as long as risk sentiment stays weak. Support is placed near Rs 1,28,000, while resistance is seen around Rs 1,33,000."
According to Religare Broking, investment appetite for gold remains buoyant across the globe. In Q2 2025, Asian-listed funds contributed 70 tonnes (around 28% of global inflows) despite managing only 9% of global assets. Meanwhile, U.S.-listed ETFs such as SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) saw strong inflows totaling $24 billion.
Overall, gold ETF demand in the first half of 2025 reached 397 tonnes, the highest since the pandemic surge in 2020. Physical demand has also remained robust — global bar and coin investments rose 11% year-on-year in Q2, touching 307 tonnes, a 12-year high. This combination of physical and financial demand underscores growing confidence in gold’s long-term value, added the brokerage.
"Analysts at Goldman Sachs now liken the rally to the 1970s spike—anchored in real demand, not mere speculation. India’s 'investment share' of gold demand is rising; buyers are gravitating toward coins and bars over expensive jewellery as fabrication costs bite. But record highs come with trade-offs: jewellery demand is forecast to weaken this festive season, " said Inderbir Singh Jolly, CEO, PL Wealth Management.
Gold prices in India rose on Monday with 24-karat gold trading at Rs 13,069 per gram, 22-karat a tRs 11,980, and 18-karat at Rs 9,802 per 10 gm. Globally, spot gold edged up 0.1% to $4,253.33 per ounce, while US gold futures for December delivery rose 1.3% to $4,266.30 per ounce. The price movement comes amid heightened expectations of further US interest rate cuts and persistent global economic uncertainties.
Central banks have continued steady gold purchases, reflecting ongoing demand for safe-haven assets amid geopolitical tensions. Gold has gained over 60% year-to-date, reaching an all-time high of $4,378.69 per ounce last week.
Recent volatility in gold prices has been fuelled by mixed economic signals and policy developments, including comments on China tariffs by US President Donald Trump and upcoming US-China trade talks. Investors are closely monitoring US inflation data, with the core Consumer Price Index expected at 3.1% for September.
Strong central bank purchases and investment flows into gold have pushed exchange-traded funds (ETFs) to trade at substantial premiums over spot prices.
In India, the festive season is shaping buyers' preferences, with a shift toward investment-oriented purchases. While gold buying has been traditionally linked to festivals and occasions such as Dhanteras, demand is increasingly driven by investment motives.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, "With momentum staying firmly bullish, gold is likely to remain elevated as long as risk sentiment stays weak. Support is placed near Rs 1,28,000, while resistance is seen around Rs 1,33,000."
According to Religare Broking, investment appetite for gold remains buoyant across the globe. In Q2 2025, Asian-listed funds contributed 70 tonnes (around 28% of global inflows) despite managing only 9% of global assets. Meanwhile, U.S.-listed ETFs such as SPDR Gold Shares (GLD) and iShares Gold Trust (IAU) saw strong inflows totaling $24 billion.
Overall, gold ETF demand in the first half of 2025 reached 397 tonnes, the highest since the pandemic surge in 2020. Physical demand has also remained robust — global bar and coin investments rose 11% year-on-year in Q2, touching 307 tonnes, a 12-year high. This combination of physical and financial demand underscores growing confidence in gold’s long-term value, added the brokerage.
"Analysts at Goldman Sachs now liken the rally to the 1970s spike—anchored in real demand, not mere speculation. India’s 'investment share' of gold demand is rising; buyers are gravitating toward coins and bars over expensive jewellery as fabrication costs bite. But record highs come with trade-offs: jewellery demand is forecast to weaken this festive season, " said Inderbir Singh Jolly, CEO, PL Wealth Management.