Gold prices during Dhanteras and Diwali surged nearly 30% this year, find out why

Gold prices on the occasions of Dhanteras and Diwali have gone up nearly 30% over the last one year and now stands at a little less than ₹80,000 per 10 grams

Gold prices on the occasions of Dhanteras and Diwali have gone up nearly 30% over the last one year and now stands at a little less than ₹80,000 per 10 grams, according to a Financial Express report.

Gold jewellery kept on display inside a shop in Kolkata on July 23, 2024.(Dibyangshu Sarkar/AFP)

The prices rose to ₹78,700 per 10 grams during this year's Dhanteras and Diwali season, compared to ₹60,750 last year, according to the report which cited data from the Indian Bullion and Jewellers Association (IBJA).

The report cited gold prices according to the IBJA to be ₹78,703 per 10 grams for 24-karat gold and ₹72,092 per 10 grams for 22-karat gold as on October 23, 2024.

The record high prices are also not expected to slow down demand for gold in Dhanteras, which will be celebrated on October 29 and Diwali, which will be celebrated on October 31, according to the report.

Gold even beat domestic equity in terms of prices, with the benchmark BSE Sensex rising only 10.79% this year in comparison.

Also, a similar 30% rise in gold prices for next year would mean that gold prices will touch around ₹1,03,000 per 10 grams.

What caused gold prices to rise?

Gold prices rose due to multiple factors including geopolitical tensions like the Russia-Ukraine war and the Israel-Gaza conflict.

Another reason was the decision of China's central bank to reduce its 1-year and 5-year prime loan rates by 25 basis points, according to the report.