Athira Sethu
Kochi, 7 October 2025
Gold prices reached an all-time high of Rs 1.19 lakh per 10 grams on Monday, jumping by Rs 3,000 in just one day, driven by demand for safe-haven assets amidst global political uncertainties and the increasing expectation of further Federal Reserve rate cuts. Silver also saw significant growth, climbing to Rs 1.48 lakh per kg, up Rs 3,000 in a day.
Geopolitical tensions, such as the US government shutdown resulting from a deadlock over federal spending, and unrest in Japan, where rising nationalism and anti-immigrant sentiments are causing friction, have led investors to flock to gold. Over the past year, gold prices have surged by 52%, from Rs 78,000 per 10 gm on October 6, 2024.
In India, with a 3% GST on gold, consumers now need to pay Rs 1,22,570 for 10 gm of gold as of Monday. Despite the high prices, demand for gold remains robust, especially during the festive season.
Tradition and rising demand
The high prices and market volatility are pushing some buyers to opt for lightweight jewellery, according to jewellers. Customers adjust their budgets, but they still invest in jewellery for these key occasions.
Focus on wedding jewellery
The demand for 18-carat and 14-carat gold jewellery has increased by 10-15% during the same period, driven largely by the festive and wedding seasons. The buying frenzy is in full swing, with a particular focus on wedding jewellery due to numerous weddings scheduled for the last quarter of 2025. In the past two to three weeks, gold prices have risen at a faster pace.
Jewellers are pre-booking gold, anticipating further price increases in the coming weeks. Silver has also gained popularity, with significant investment interest and growing consumer demand. Kataria noted that silver is now seen as the “new gold,” with demand for it up more than 50% over the past few years as more people turn to it for investment.
Proceed with caution
However, analysts advise caution for those looking to invest in gold at this juncture. After a substantial surge in gold prices this year, the risk of short-term corrections is significantly higher.”
