Gold prices in India are once again making headlines as the festive season draws near. Reports indicate that the rate for gold may soon breach the ₹100,000 mark per tola (approx. 11.66 grams), a psychological barrier that would mark a new peak for domestic bullion.In major markets, gold has already raced past earlier records — in Delhi, the price of 10 grams of 24K gold recently hit ₹1,34,800. This rally is fueled by active buying ahead of Dhanteras and Diwali, as well as global uncertainty pushing investors toward safe-haven assets. Across the country, jewelers are reporting a noticeable slowdown in footfall and transactions despite high inquiries. Many customers are balking at paying record premiums. Some shops are offering discounts on making charges to entice hesitant buyers.
Analysts point out several structural drivers behind the surge: a weaker rupee, global inflation pressures, continued central bank accumulation, and tight supply lines. The local premium over spot pricing has also widened to double-digit percentages. If the ₹100,000 per tola threshold is crossed, it could further squeeze affordability for middle and lower income buyers, pushing many to delay purchases or shift to alternatives like digital gold or silver.Still, many consumers persist with traditional buying, believing in the auspiciousness of Dhanteras and viewing gold as both cultural and financial security.
Traders caution that such elevated levels increase the risk of price corrections once the festival demand fades. Volatility could be high if global cues turn.For now, the gold market remains on edge — poised between exuberant runs and the inevitability of a re-balance.