Gold Prices hit record high on Dhanteras as festive demand soars

Gold prices surged across India on Dhanteras, touching record levels as festive buying drove demand. On Saturday, 24-carat gold reached ₹1,32,953 per 10 grams, rising ₹3,350 from the previous day. The 22-carat variant climbed ₹3,070 to ₹1,21,883 per 10 grams.

People crowded jewellery stores despite soaring prices. Many said they could not skip buying gold on Dhanteras, which marks the start of Diwali celebrations and honours Goddess Lakshmi, the deity of wealth and prosperity. The day is considered auspicious for buying gold, silver, and new assets that bring good luck to homes and businesses.

City-Wise Gold Rates

Gold prices rose sharply across major cities. In Delhi, 24-carat gold sold at ₹1,32,953 per 10 grams, while 22-carat gold stood at ₹1,21,883. Mumbai recorded similar rates, with 24-carat gold at ₹1,32,807 and 22-carat gold at ₹1,21,737.

In Chennai, 24-carat gold traded at ₹1,33,121 per 10 grams, while 22-carat gold reached ₹1,22,031. Kolkata reported ₹1,32,805 for 24-carat and ₹1,21,735 for 22-carat gold. Pune saw 24-carat gold priced at ₹1,32,813 and 22-carat gold at ₹1,21,743. Bengaluru followed closely, recording ₹1,32,795 for 24-carat and ₹1,21,725 for 22-carat gold.

The steady price rise reflected strong buying sentiment ahead of Diwali. Jewellers said buyers were undeterred by record prices, driven by both tradition and investment confidence.

High Demand and Shortage Fears

Tanishq reported a surge in gold coin and bar purchases. Ajoy Chawla, CEO of Titan’s Jewellery Division, said the rush exceeded expectations. “Consumers realised that gold prices are not coming down. They are buying now before rates rise further,” he told NDTV Profit.

Chawla added that the company anticipated a bullion shortage due to the sharp spike in demand. “We have prepared for the festive surge, but some stores may run out of coins. Customers fear there may be a shortage,” he said.

Gold dealers across the country echoed similar concerns. Many said stocks of small coins and light jewellery moved fastest as people sought affordable options.

Why Prices Are Rising

Analysts attributed the record prices to a mix of global and local factors. Internationally, gold prices climbed as investors turned to safe-haven assets amid geopolitical tensions and inflation worries. Domestically, the weak rupee and robust festive demand pushed prices even higher.

India remains the world’s second-largest consumer of gold after China and imports most of its supply. The jewellery industry drives a large share of that demand. During the festive season, especially Dhanteras and Diwali, gold buying peaks across the country.

24K vs 22K Gold

Experts reminded buyers about the difference between 24-carat and 22-carat gold. The 24-carat variety, with 99.99% purity, is too soft for jewellery and often bought as bars or coins. The 22-carat form, made with gold and trace metals like copper and zinc, is ideal for ornaments.

Outlook

Traders expect prices to remain firm through the festive period. With high demand, limited supply, and global uncertainty, India’s gold market shows no signs of cooling. For many households, however, Dhanteras remains incomplete without at least a small piece of gold — no matter the price.