Gold Price Soars Past ₹1.3 Lakh per 10 Grams Ahead of Diwali; GST and Making Charges Push Final Cost Higher

Gold Prices Hit Record High Ahead of Diwali Festival

With Diwali just around the corner, the festive gold rush in India is expected to come at a steep cost this year. Gold prices have surged past ₹1,30,000 per 10 grams, marking an almost 65% increase compared to last year’s Dhanteras, when the price stood at ₹78,610 per 10 grams.

In just the first ten months of 2025, gold rates have risen by nearly 58%, driven by global economic uncertainty, inflation concerns, and investor preference for safe-haven assets.

Impact on Consumers

Indian households traditionally buy gold during Dhanteras, considering it auspicious. However, the current market scenario means that consumers will face heavier bills this season.

With the addition of 3% GST, the effective cost of 24-carat gold per 10 grams rises to about ₹1,33,900, and after including making charges, the final price could reach approximately ₹1,42,000.
These charges vary from jeweller to jeweller, depending on design and craftsmanship.

Despite soaring prices, jewellers remain optimistic that festive demand will stay strong, bolstered by salary hikes, festive bonuses, and consumer sentiment.

Expert Insights

According to Manav Modi, investment analyst at Motilal Oswal,

“The overall demand for gold remains high as consumers are still in a buying mood. Even with prices up nearly 60% in 2025, gold’s fundamentals remain strong, and confidence among buyers is steady.”

Jewellers are also introducing special offers, including free gold coins, price-lock schemes, and exchange bonuses to attract buyers amid record-high rates.

However, experts caution buyers to watch for hidden charges such as inflated making fees or reduced buyback rates, which can significantly affect the final value of their purchase.

How Consumers Are Adapting

Despite the record-breaking rates, customers are finding smart ways to manage festive gold purchases:

• Exchanging old gold to offset the cost of new jewellery.

• Opting for lightweight or lower-karat jewellery (14K–18K).

• Using credit card EMI or cashback offers to ease payment.

• Investing in digital gold or Sovereign Gold Bonds for long-term savings.

• Using reward points and wallet cashbacks to make partial payments — a trend especially popular among urban youth.

Market Sentiment

Gold continues to be viewed as a symbol of prosperity and a secure investment, particularly during auspicious times like Dhanteras and Diwali.
Even with prices at historic highs, India’s cultural and emotional attachment to gold ensures that the festive glitter won’t fade away.