India Gold Demand May Fall Up To 11% In October Despite Festive Buying Pickup As Gold Prices Remain High
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Gold demand in India remains below last year’s levels despite improving festive purchases, with jewellers offering discounts, exchange schemes and payment benefits to attract buyers.
India’s gold sales volumes are likely to fall around 11% year-on-year in October 2026, despite a pickup in festive and wedding-related purchases during the month, according to Surendra Mehta, secretary of the India Bullion and Jewellers Association (IBJA).
Consumer buying has improved from September levels, but the recovery has not been enough to match last year’s sales. Mehta does not expect a significant improvement in demand over the coming weeks, suggesting that the festive season may not deliver a strong rebound. IBJA estimates showed that gold sales were down 8-10% year-on-year as of 25 September 2026.
The demand trend comes as jewellers prepare for the next round of festive purchases in November, when Dhanteras, Diwali and Bhai Dooj traditionally support spending on gold, jewellery and gifts.
Gold Prices Remain Above Last Year’s Levels
Higher gold prices and silver prices remain an important factor for consumers. During the festive season peak in October 2025, gold prices ranged between ₹1.22 lakh and ₹1.34 lakh per 10 grams.
On 22 October 2026, spot gold was trading at ₹1,43,447 per 10 grams on the Multi Commodity Exchange (MCX). The metal had earlier crossed ₹2 lakh per 10 grams at the end of January 2026.
Jewellers generally use domestic spot MCX gold and silver prices and rates published by IBJA as benchmarks when setting jewellery prices. Making charges and other costs add to the final bill and vary across retailers and locations.
The higher price level comes as consumers continue to face a gap between the current cost of gold and the prices seen during last year’s festive season.
Jewellers Roll Out Offers Ahead Of Diwali
Jewellery brands and retailers have stepped up festive marketing campaigns and promotional offers to attract buyers. Many continue to provide old-gold exchange schemes, flexible payment options and gold rate protection on selected jewellery purchases made with an advance payment. Offers include:
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Discounts of 10-100% on making charges.
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Discounts of 10-30% on diamond value.
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Free 22-karat gold coins on purchases above specified thresholds, including a minimum spend of ₹1 lakh at some outlets.
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Minimum discounts of 5% on payments made using credit cards issued by select public and private sector banks.
The offers vary by retailer and purchase conditions.
Gold Market Faces Further Uncertainty
Gold’s overall price trend remains weak, with a stronger rupee and inflation concerns weighing on the market, according to the information provided. Investors are also watching the US Federal Reserve’s policy decision on 28 October and its guidance on inflation. The decision could influence expectations around further monetary tightening.
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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