As the five-day Diwali festival kicks off across India, gold prices continue to hover at historic highs. The yellow metal, traditionally seen as both an
auspicious purchase and a hedge against inflation, is priced at Rs 13,086 per gram for 24K gold, showing no change from the previous day. With global factors such as fears of a potential US government shutdown influencing investor behaviour, gold has retained its momentum as a safe-haven asset, especially in a season known for jewellery purchases. Gold Prices Remain Flat Ahead of Peak Festive Spending Despite the start of major Diwali shopping, the price of gold has remained consistent across karat variants as of Sunday, October 19. According to data, the rates are: 24K gold: Rs 13,086 per gram 22K gold: Rs 11,995 per gram 18K gold: Rs 9,814 per gram Gold is widely regarded as an effective hedge against inflation; among the different types of gold, 24-carat gold stands out as the most expensive and is primarily used for investment purposes. In contrast, 22-carat and 18-carat gold are mainly employed in the creation of jewellery. This pricing stability comes just as consumers head to jewellery stores to mark Dhanteras and Diwali with gold purchases, following the long-standing tradition of buying gold during the festival as a symbol of prosperity. City-Wise Gold Rates Show Uniformity Across India Gold prices have shown little variation across Indian cities, reflecting a stable trend in the market: City 24K Gold 22K Gold 18K Gold Delhi Rs 13,101 Rs 12,010 Rs 9,829 Mumbai Rs 13,086 Rs 11,995 Rs 9,814 Chennai Rs 13,091 Rs 12,000 Rs 9,900 Ahmedabad Rs 13,091 Rs 12,000 Rs 9,819 Bangalore Rs 13,086 Rs 11,995 Rs 9,814 Hyderabad Rs 13,086 Rs 11,995 Rs 9,814 The uniformity in pricing across metros and Tier-2 cities reflects strong demand met by consistent supply in the lead-up to Diwali. Why Gold Prices Are Soaring This Diwali The rally in gold prices began earlier in October, influenced by global market jitters, especially concerns surrounding a possible US government shutdown, which traditionally increases investor interest in gold as a stable asset. With economic uncertainty on the global stage and festive optimism at home, Indian consumers are turning to gold not just as a traditional purchase, but also as a strategic financial move.
