On August 25, 2023, gold prices in India dipped slightly compared to the previous day, continuing a small downward trend over the past ten days, during which they fell by about 0.4%. In Chandigarh, 24 carat gold costs ₹59,000 per 10 grams, while 22 carat gold trades a little lower, and 18 carat gold varies depending on the city. Despite this decline, Indians continue to prefer gold as an investment that protects them against inflation.
Global factors such as economic uncertainty and trade tensions, including U.S. tariffs, often drive price fluctuations. In India, though, domestic demand plays a stronger role during the festive season. Families typically purchase jewelry during Diwali for cultural, religious, and investment reasons. Punjab stands out as one of the country’s highest gold-consuming states, where families and businesses actively trade gold and manufacture jewelry.
The festival season proves especially important for jewelers in Punjab. As Diwali approaches, shops stock up on new designs to meet rising customer demand. Buyers flock to stores to invest in ornaments both for personal use and as gifts. This surge in sales often pushes prices upward, reversing temporary declines.
Experts suggest that while prices currently remain low, demand will likely climb in the coming weeks. Jewelers across India have already begun preparing for this seasonal rush, expecting large numbers of buyers to return to the market. For investors, the present dip may offer an opportunity before festive-driven demand lifts prices again.
Gold continues to hold cultural, emotional, and financial significance in India. Families see it as a hedge against inflation, an investment for the future, and a treasured possession during celebrations. Its role in Indian society remains as strong as ever.
