Gold prices hit record high ahead of Diwali amid global trade tensions

Gold prices touched a record Rs 1,30,874 per 10 grams ahead of Diwali, driven by global trade tensions, rupee depreciation, and strong investor demand. Analysts predict further gains as buyers rush to gold amid market uncertainty and safe-haven appeal.

Mumbai: As Diwali approaches, the gold prices have hit a new high amid increasing global uncertainties, including trade tensions and softening macro data, prompting a flight to safety.

Last month, gold prices jumped by Rs 20,073 per 10 gram or 18 per cent, triggering a strong sense of FOMO (fear of missing out), as every pullback is being met with aggressive buying, with Diwali around the corner. Since last Dhanteras, gold has delivered substantial gains for investors, with prices witnessing a record surge.

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The price of 24-carat gold (10 grams) rose to a new high of Rs 1,30,874 on Friday, according to data published by the India Bullion and Jewellers Association (IBJA). But the intra-day trading closed at Rs 129,584, due to rupee depreciation against the dollar.

According to IBJA data, the price of bullion has been steadily increasing throughout the week, by nearly Rs 1,000 per day.

Analysts expect gold jewellery sales to increase 12-15 per cent this Dhanteras season with consumers preferring lighter, lower-karat designs, investment-grade pieces, hallmark-certified gold coins, digital gold and sovereign gold bonds

Dovish signals from the US Federal Reserve, ETF inflows, and central bank purchases are driving the surge in gold, the report from Ventura Securities said.

The gold has generated returns of approximately 63 per cent in rupee terms and 53 per cent in dollar terms since last Dhanteras, and a possible rally towards Rs.1.5 lakh per 10 grams is possible by 2026, the report said.

Gold prices have skyrocketed since March 2025, rising from $3,000 an ounce to around $4,254. In India, prices increased from Rs.78,840 per 10 grammes on Dhanteras 2024 to Rs.128,200 currently.

Trade tensions between the United States and China escalated as the latter announced tighter export restrictions on rare earth metals and magnets. Meanwhile, the United States has announced an additional 100 per cent tariff on Chinese imports, on top of the existing 30 per cent, which has boosted demand for gold.