Gold Demand in India Stays Weak Ahead of Dhanteras and Diwali 2026

Gold demand in India remains weak ahead of Dhanteras and Diwali, with October sales volumes expected to be about 11% lower than last year despite a pickup from September, according to the India Bullion and Jewellers Association. Gold prices have risen sharply, reaching Rs 1,43,447 per 10 grams on the MCX by October 22, 2026, compared to Rs 1.22-1.34 lakh during the same festive period last year. Domestic prices fluctuated this month, peaking at Rs 1,48,909 on October 9 before easing to Rs 1,45,353 by October 19. Jewellers are offering discounts on making charges, old-gold exchange schemes, and credit card incentives to attract shoppers. The outlook remains uncertain due to a stronger rupee, inflation concerns, and upcoming US Federal Reserve policy decisions that could influence gold prices.