Gold Prices Extend 4% Weekly Rally as Festive Buying and Global Uncertainty Lift Demand - Check City-Wise Gold Rates on October 10

Mumbai, 10 October 2025: Gold prices in India continued their upward trend on Friday, marking a 4% weekly rally driven by festive demand and heightened global uncertainty. Although international prices eased marginally below USD 4,000 per ounce, domestic rates remained resilient as households and investors turned to the yellow metal amid geopolitical and market turbulence.

Strong Festive Demand Pushes Domestic Gold to ₹12,416 per Gram

The average national price for 24-karat gold stood at ₹12,416 per gram (₹1,24,160 per 10 grams) on October 10, while 22-karat gold was priced at ₹11,381 per gram (₹1,13,810 per 10 grams). Meanwhile, 18-karat gold averaged ₹9,312 per gram (₹93,120 per 10 grams) across India.

The surge in prices was fuelled by a rise in retail purchases during the Karwa Chauth festival, which traditionally marks a peak in jewellery demand. Retailers across major cities, including Mumbai, Chennai, and Delhi, reported brisk buying, suggesting robust sentiment ahead of Dhanteras and Diwali.

This steady domestic trend, despite a minor correction globally, highlights India’s cultural reliance on gold as both a symbolic and financial asset, reinforcing its position as the world’s second-largest consumer after China.

Global Correction Below USD 4,000 per Ounce Fails to Dent Indian Demand

While global gold prices witnessed a slight retreat to just under USD 4,000 per ounce following a series of record highs earlier this month, India’s domestic market stayed firm. Analysts point out that profit booking by international traders triggered this marginal dip, but the underlying momentum remains supported by rising inflation concerns and geopolitical tensions in major economies.

The resilience of Indian prices underlines the divergence between global speculative movements and domestic consumption trends. The Reserve Bank of India (RBI), along with other central banks worldwide, continues to diversify reserves by expanding gold holdings. As of mid-2025, India’s reserves stood at around 770 tonnes, reflecting a sustained strategic interest in gold as an inflation-hedging asset.

Retail Demand and Cultural Sentiment Keep Gold Prices Elevated Through October

Jewellers anticipate that gold demand will remain buoyant through the festive season, supported by both retail jewellery purchases and wedding-related orders. The upcoming festivals — Dhanteras, Diwali, and the start of the wedding season — are expected to keep buying sentiment strong, even as minor fluctuations occur in international markets.

Market observers note that the domestic price stability amid global softening suggests resilient retail momentum, particularly from urban buyers increasingly opting for digital and physical gold investments.

City-Wise Gold Prices in India (₹ per gram)

Institutional Buying and Macroeconomic Uncertainty Sustain Long-Term Support

Central banks worldwide have continued to increase their gold holdings amid currency volatility and inflation pressures. This institutional accumulation provides structural backing for gold’s long-term value stability. Despite short-term fluctuations, the metal’s hedging role against macroeconomic uncertainty has strengthened in 2025.

Global investors have also shown renewed interest in gold exchange-traded products (ETPs), reflecting cautious sentiment toward other asset classes, especially as bond yields and equity markets face volatility following policy shifts by the US Federal Reserve and European Central Bank (ECB).

Gold prices in India have extended their 4% weekly rise, supported by festive buying and resilient domestic demand, even as global rates witness mild corrections. The ongoing festive and wedding season, coupled with central bank accumulation, continues to anchor India’s gold market stability in the near term.

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