Gold Prices 9% Above Last Year’s Peak: Will Festive Demand Hold Up?

Gold jewellery demand is heading into the festive and wedding season with prices still elevated. On 30 September 2026, the 5 October MCX gold futures contract was at ₹147,460 per 10 grams, up 0.84% at 12:08 pm IST.

That is around 9% above last year's festive-season peak, when gold traded between ₹1.22 lakh and ₹1.34 lakh per 10 grams. Yet industry sources expect jewellery volumes to remain below last year's levels as buyers become more careful with their spending.

Gold had also crossed ₹2 lakh per 10 grams at the end of January 2026 before easing back. Jewellery prices are typically based on domestic gold rates, plus making charges and other retailer- and location-specific costs.

How Are Buyers Adjusting To Higher Gold Prices?

Consumers are becoming more selective about what they buy. Sources expect demand to rise by around 20–25% during the festive and wedding season, but jewellery volumes could decline 10–15% from last year.

One visible change is the preference for lighter pieces. Buyers are also looking at lower-karat gold, studded jewellery and designs that can be worn on different occasions.

Old-gold exchange has picked up as well. One industry source estimated exchange volumes had risen 15–20%, with old jewellery being used to fund a significant share of purchases, particularly for heavier pieces.

The shift allows customers to stay within their budgets while continuing to buy gold jewellery. Design and versatility are also becoming more important as shoppers compare what they get for a given amount.

Gold rates also vary by purity and location. The supplied market data puts 24-karat gold at around ₹14,880 per gram in Mumbai, 22-karat gold at around ₹13,655 per gram in Delhi and 18-karat gold at around ₹11,160 per gram in West Bengal.

Will Festive Season Help Jewellery Sales?

The coming months include Navratri, Dussehra, Dhanteras and Diwali, followed by the winter wedding season. Jewellery sales were already 8–10% lower year-on-year in September 2026, according to industry sources.

Jewellers are expected to use promotions to draw shoppers during the festive period. Last year's offers included discounts of around 20–40% across different jewellery categories, along with reductions in making charges, promotions on diamond jewellery and gold coins linked to purchase thresholds.

This year, sources expect the focus to shift more towards making-charge benefits, old-gold exchange schemes and flexible payment options, rather than relying only on large headline discounts.

Mall footfall could provide another lift. Retailers may benefit as consumers combine jewellery shopping with fashion, gifting, beauty, dining and entertainment during the festive period.

The broader buying pattern is also changing. Consumers are looking at new launches, festive collections, limited-edition pieces and gifting options, giving jewellers more ways to attract buyers even with gold prices at elevated levels.

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