Summary of this article
Gold prices are surging this festive season, know what gold buyers can do amid the price surge.
Shardiya Navratri 2025: The festive season is in full swing in India. Amid the festivities, people make major purchases such as buying precious metals like gold and silver. The festival of Navratri is considered a very auspicious time to make such investments. The festival of Navratri is dedicated to the worship of Goddess Durga and her nine forms, known as the Navadurga.
Why Do Gold Prices Surge During The Festive Season
Buying gold during Navratri is typically associated with welcoming prosperity and good fortune. Purchasing gold during the festive season is believed to attract wealth and blessings from deities like Goddess Durga and Goddess Lakshmi. Due to the festive demand, gold prices come under upward pressure due to heightened demand.
In 2025, the nine-day festival of Navratri commenced on September 22 and will conclude on October 2. In the first four days of Navratri, the price of 24 karat gold has increased by over 2 per cent to Rs 11,503 per gram from Rs 11230 per gram on September 21.
The price of 22 karat gold also increased by over 2 per cent to Rs 10545 per gram on September 26, compared to Rs 10,295 per gram on September 21. Notably, the rate of 24 karat gold and 22 karat gold peaked on the second day of Navratri. On September 23, the price of one gram of 24 karat gold was Rs 11,584 and Rs 10,620 for 22 karat gold.
The festive demand has driven the recent uptick in gold prices as buyers purchase the yellow metal both as an investment and as a gift to exchange on the auspicious occasion. Additionally, the price rise may have seen some support from the safe-haven appeal of gold. In recent days, the stock market has been shaken by several headwinds, such as the US H-1B Visa fee hike and the 100 per cent tariff imposed on the import of select pharmaceutical goods to the US.
Gold prices are subject to volatility, as an uptick in demand can significantly impact the price of the yellow metal. This phenomenon happens during the festive season due to the fixed supply of gold compared to the flexible demand, which tends to shoot up during the festive season.
What Should Gold Buyers Do
Gold's price rise leads to an adverse situation for buyers, wherein they wish to purchase the yellow metal but may find the cost too high. Buyers who wish to buy gold for gifting often end up either buying lighter pieces or postponing their purchases till the price reduces. However, investors often face confusion in such situations, as the high price acts as a barrier to entry.
Aksha Kamboj the Vice President of India Bullion & Jewellers Association (IBJA) told Outlook Money that even at the high prices an investment in gold is expected to retain its safe-haven status and act as a hedge against volatility. However, she added that as opposed to lump-sum investment in gold, buyers can benefit from a staggered investment in gold which reconciles the positive buyer sentiment of the festive period with financial discipline.
"Purchases during the festive season reflect India's cultural affinity towards gold. Even if gold is at elevated prices, gold's status as a safe haven is assured. A more useful shift in mindset for investors is a systematic investment, say monthly, rather than a lump sum investment. Systematic purchases reconcile the positive buyer sentiment of the festive period with some discipline towards portfolios, which offers investors steady asset allocation to long-term wealth preservation and inflation hedge," Kamboj said.
Kamboj added that gold prices are expected to see continued support post the festive season as well due to the safe-haven appeal of the yellow metal.
"Festive demand may provide momentum in the short term, but gold's long-term trajectory is driven by global macroeconomic conditions, purchases made by central banks and uncertainty related to geopolitical risk. The theme of gold as a long-term driver remains intact and makes the chance for continued strength after the festive season. Gold is not just a festive purchase, but a strategic allocation in a portfolio that offers both stability and resilience," Kamboj said.
Kamboj said that investors can consider investing in the yellow metal through both traditional jewellery, coins and bars or through modern instruments such as gold ETFs or digital gold.
"Gold exposures can be achieved through several methods, such as traditional jewellery, coins, and bars, as well as modern instruments such as gold ETFs or digital gold. The method of acquiring exposure depends on an investor's liquidity needs, risk appetite, and investment horizon," Kamboj said.
