Gold Price Update: Will Rates Soar Again in the Post-Diwali Wedding Season? Here’s What Experts Say
Gold Price Update: Will Rates Soar Again in the Post-Diwali Wedding Season? Here’s What Experts Say
Current dip driven by Israel–Iran ceasefire and global trade deals; long-term trends remain bullish, say analysts
Gold witnessed a volatile week globally, ending with a corrective dip as easing geopolitical tensions and positive trade developments cooled its safe-haven appeal. Spot gold fell below key support levels of $3,330 per ounce, signaling continued consolidation after reaching record highs in April.
The recent de-escalation of the Israel–Iran conflict, progress in US-China trade agreements, and renewed international commercial negotiations prompted investors to shift back to equities. As a result, global stock markets soared with US indices reaching fresh highs, while US Treasury yields and the dollar declined. Crude oil prices also softened, further adding to the pressure on bullion.
In India, gold prices had briefly touched the ₹1 lakh per 10 gram mark about three months ago, especially during the peak of Middle East tensions. However, prices have since dipped and currently hover around ₹96,500 to ₹98,500 per 10 gram. Yet, analysts maintain that this decline is temporary.
With the upcoming wedding season post-Diwali, demand is expected to rise again. According to ICICI Bank Global Markets, gold prices are likely to climb back to ₹1,00,000 per 10 gram by December 2025. The bank’s report indicates this bullish trend could continue into the second half of the year, supported by strong investor sentiment and macroeconomic factors.
Despite the recent pullback, gold has delivered a 28% return in 2025 so far, making it one of the top-performing asset classes. Experts suggest that such corrections are healthy and offer buying opportunities for long-term investors. In fact, retail demand and gold imports slowed during the price spike, with May imports falling to $2.5 billion, down from $3.1 billion in April.
Over the past 10 years, gold has offered a remarkable 237.5% return, reinforcing its value as a long-term wealth builder. Analysts caution against panic selling during dips, warning that it may result in missed long-term gains.
In summary, while short-term fluctuations are inevitable due to geopolitical and economic shifts, gold remains a strong hedge and a prudent investment for those with a long-term horizon.
