As the festival of lights ‘Diwali’ approaches, the shining precious yellow metal ‘Gold’ are top of mind for Indians ready to invest during this festive season. For many Indians, this period is seen as one of the most significant times for the purchase of the precious metal. But, nevertheless, gold prices have been on a rollercoaster.
Dhanteras and Diwali, both considered auspicious days to buy gold, and this year, the upward trend in gold prices may prompt even more interest from investors.
Let’s take a closer look at this week’s performance, which shows that gold prices have been fluctuating day by day giving potential buyers a lot to think about as they consider their Diwali purchases.
A Week in Review: The Ups and Downs
Gold prices over the past week have been anything but stable. The data below gives us a peek into the daily prices for both 22K and 24K gold per 10 grams:
According to Goodreturns data, the week began with 24-carat gold priced at Rs 79,640 on October 20, gradually climbing to Rs 80,298 by October 26.
What are Global Factors contributing to the Yellow Metal Price Surge?
There are several global factors that are currently playing a crucial role in the upward trajectory of the precious yellow metal value. One of the major factors contributing to this trend is the current ongoing Middle East conflict, which has amplified the demand for safe-haven assets like gold.
Image used for representational purposes only
Apart from this, the U.S. Federal Reserve’s recent interest rate cuts have further boosted gold’s appeal among investors, both in India and globally.
Now, is it the Right Time to Buy?
Given the price data, many prospective buyers are wondering if now is the right moment to invest in gold, or if prices could potentially dip in the coming days.
If seen historically, Diwali and Dhanteras are peak times for gold purchases, so prices tend to hold steady or climb due to heightened demand.
Representational Image
However, for those waiting for a possible price drop, is worth noting that it is possible that gold may continue to trend upward as geopolitical tensions and economic uncertainties remain.
What to Expect for Diwali
With Diwali just a week away, the upward trajectory of gold suggests that the yellow metal has taken a glittering journey. This price point could act as a psychological threshold, encouraging investors to lock in their purchases ahead of a possible further rise.
