Gold prices rise ahead of Diwali, major jewellers still cautious in purchasing

Gold prices are seeing an increase in India ahead of the Diwali festival. On Wednesday, October 28, 2026, gold prices have risen at major jewellers such as Tanishq, Malabar Gold and Diamonds, Kalyan Jewellers, and Joyalukkas. The India Bullion and Jewellers Association (IBJA) has also reported that compared to yesterday, the indicative jewellery prices for gold and silver have increased today.

According to an NDTV report, major jewellers in India are delaying gold purchases. They are expecting that gold prices may decrease further. According to Samit Guha, CEO and Managing Director of the country's largest precious metal refiner MMTC-PAMP, major jewellery chains have not yet fully returned to the market. Usually, when prices start to rise, large jewellery manufacturers increase purchases to secure supply, but when they feel prices will fall further, they use their inventory.

Currently, buying is being led by small and medium-sized jewellers, some of whom have placed frequent orders. Last week, the price of gold fell below $4,000 per ounce for the first time since July. Since the US-Iran war began at the end of February, gold prices have fallen by nearly 24 percent. It is noteworthy that in January, gold prices crossed $5,400 to reach record levels.

Demand for gold in India has remained sluggish this year because the government increased the import duty to 15 percent in May. Prime Minister Narendra Modi has also repeatedly urged Indians to cut down on gold purchases to reduce the trade deficit. India imports almost all of its consumed gold. Due to high tariffs, more buying is happening in the cash market. According to Samit Guha, the increase in duty has impacted buying. In contrast, in China, the world's largest consumer of gold, demand in households has increased as prices have fallen.

According to Citi Research, India's gold imports may decline due to strict import rules and a reduction in rural demand caused by seasonal disruptions from El Niño. Shipments between October and December could be approximately 106 tonnes, which is about half of the historical fourth-quarter average of 212 tonnes. Sales at MMTC-PAMP are also seeing a decline compared to last year, and demand is more towards small coins and bars. Samit Guha added that if gold bounces back, buying will be seen.

According to The Economic Times report, on October 28, 2026, the price of 22-carat gold at Tanishq is ₹13,245 per gram, which is higher than the ₹13,175 on October 27. At Malabar Gold and Diamonds, Joyalukkas, and Kalyan Jewellers, the price of 22-carat gold is ₹13,195 per gram, which was ₹13,135 yesterday. According to IBJA's indicative retail sale prices, 24-carat (999) gold is ₹14,230 per gram, 22-carat is ₹13,889 per gram, 20-carat is ₹12,665 per gram, and 18-carat is ₹11,526 per gram. The price of silver is ₹1,90,000 per kg.

Comparing IBJA prices with October 27, there is an increase of ₹87 in 24-carat, an increase of ₹85 in 22-carat, an increase of ₹78 in 20-carat, an increase of ₹70 in 18-carat, and an increase of ₹56 in 14-carat. The price of silver has decreased by ₹2,499 and is at ₹1,90,000 per kg.

According to Prithviraj Kothari, President of IBJA and Managing Director of RiddiSiddhi Bullions Ltd., gold is near $4,000/oz ahead of the Fed's decision. It is caught between fears of oil-based inflation on one side and soft treasury yields and physical buying on the other. He expressed expectations that gold could test $3,950 and silver could head towards $50, but there is a possibility of a 10-15% jump in the coming weeks. He further stated that imports in China have remained strong, while Diwali demand in India could compensate for weak demand in Western countries.