Gold prices are projected to experience a dramatic rally in the coming months, with industry experts and jewellers forecasting that rates could cross the benchmark Rs 1.75 lakh mark per 10 gms ahead of the Diwali festive season. Strong domestic demand, changing consumer preferences, and geopolitical unrest in the international market are expected to fuel this upward surge. Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council (GJC), said that a major driver behind the price spike will be increased demand of jewellery during the upcoming festive season. “Traditional buying sentiment is expected to remain strong across households, prompting high activity in local markets. Buying for following wedding season will further push up the prices,” he added. However, with standard 24-carat and 22-carat gold surging beyond the reach of average middle-class budgets, the retail sector is witnessing a noticeable shift in consumer purchasing habits.

 

“To adapt to high prices, buyers are increasingly turning toward 18-carat and 9-carat gold jewellery. These lower-karat options provide a budget-friendly alternative, allowing consumers to maintain the tradition of buying gold during auspicious occasions without overextending their finances,” said another jeweller. Jewellers believe that the high-volume demand for lightweight and affordable jewellery will actively support the overall price momentum across domestic markets. On the international front, geopolitical volatility - particularly surrounding ongoing conflict dynamics involving Iran and the US - continues to create a bullish environment for precious metals. Despite market turbulence, buyers have shown resilience, refusing to back off from purchases. As gold remains a primary safe-haven asset amidst global uncertainties, international market pressure combined with sustained domestic festive appetite is expected to push gold valuations to unprecedented highs by Diwali.