.png){kind=logo}
Gold prices in India have skyrocketed in 2025, with prices reaching Rs. 1,09,388 lakh per 10 grams, a 40% hike from the previous year when it was priced at Rs. 73,000. Globally, the precious metal costs $3,700 per ounce, which is almost twice the cost recorded in September 2023. These high prices are piquing the market's interest in the impact on Indian gold purchases during festive seasons.
Gold prices in India have gone up amid growing geopolitical tensions, including the Russia-Ukraine conflict, Middle-East unrest, and Trump tariff concerns. To safeguard the nation’s economy during these uncertain times, India’s central banks are buying more gold.
Other factors that have also influenced the gold demand include the much-anticipated US Federal Reserve rate cuts in 2025. The yellow metal has long been regarded as a safe-haven asset during market volatility, resulting in rising prices.
Indians usually buy gold during weddings and festivals such as Dussehra and Diwali. India has about 24,000 tonnes of gold, making it the biggest gold-buying country in the world. Experts suggest that there is little to no change in the purchase capacity of the elite classes, but middle-class buyers might be more careful this year. However, the World Gold Council report says people are starting to show interest again, especially in gold bars and coins, as festival season closes in.
Starting September 22, the government has announced a reduction in taxes on many items under the new GST reform. This cuts down a family’s expenses on necessities and increases their disposable income. Experts speculate this might help people purchase gold, even though prices continue to soar.
India bought more gold from other countries in August than it had in previous months. The country now has a record 880 tonnes of the yellow metal saved up, which is 12.5% of all the foreign money reserves. Global conflicts, US interest rate cuts, and central banks buying gold have all contributed to the jump in prices.
The market is patiently waiting to see how the GST tax cut plays out and if it will help push the sale of the precious metal despite the expensive price tag. Gold traders and investors are keeping a close eye on consumer behaviour, as the next few months will be important for understanding the demand trends and probabilities of price stability.
Also Read: Gold Prices Today: How the US Fed Rate Cut Shapes the Market
