Gold Prices Soar Ahead of India's Festival Season: Will Demand Remain Resilient?
The Indian festival season is about to kick off, and gold prices are at an all-time high. As Ganesh Chaturthi marks the beginning of this crucial period, buyers are facing a dilemma: should they buy gold now or wait for a correction?
According to Kaushlendra Sinha, CEO of IAGES, despite gold prices being 45-50% higher than last year, demand is expected to remain resilient. 'Ganesh Chaturthi is the onset of the festival season in India and sets the sentiment for festival-led gold buying,' he said.
Experts expect consumers to become more measured in their spending due to elevated prices. Smaller-ticket purchases, lightweight jewellery, and gold coins are likely to gain preference over large-ticket acquisitions. 'As we move into the coming weeks, we expect festive buying and gifting to become a stronger demand driver,' said Darshan Desai, CEO of Aspect Bullion & Refinery.
Global factors such as interest-rate expectations, the dollar, geopolitical tensions, and physical demand will shape gold prices in the short term. Renisha Chainani, Chief Research Officer at Augmont, expects gold to remain in a $4,300 to $4,500 range, equivalent to approximately ₹1,50,000 to ₹1,57,000.