Will Gold Rate Decrease After Diwali? Here’s What to Expect

Every year, as Diwali draws near, gold shops across the country buzz with excitement. Buying gold during the festival is more than just a tradition — it’s seen as a sign of prosperity and good luck. Naturally, this festive rush pushes prices up as demand spikes. But once the diyas are packed away, many start wondering: will gold prices finally come down after Diwali?

Festive Trends and Buying Patterns

It’s quite common for gold prices to rise before and during Diwali. People buy jewellery, coins, and bars for gifting or investment, which increases demand. Once the festival season wraps up, the buying frenzy usually slows down. This can cause a small dip in prices, but it’s rarely a big one. In most years, the correction is modest — just enough to balance the festive surge.

The Bigger Picture: Supply and Global Impact

Gold doesn’t move only on Indian sentiment. It’s influenced by what’s happening around the world — from global supply chains to geopolitical events. If there’s tension in major economies or uncertainty in markets, investors often turn to gold as a safe bet, which keeps prices high. However, if inflation starts easing or the U.S. dollar strengthens, gold might lose some of its shine temporarily.

Economic Factors at Play

Interest rates are another big influence. When central banks raise rates, people prefer putting money into fixed-income investments rather than gold, which can push prices down. On the other hand, if rates are expected to drop, gold often gains back its appeal.

What’s the Likely Outcome?

After Diwali, a slight correction in prices wouldn’t be surprising. But a major fall seems unlikely given the current global uncertainty and steady demand from central banks. In other words, while gold might get a little cheaper, it’s not expected to tumble dramatically.

So, if you’ve been waiting for a big post-Diwali dip, you might want to adjust your expectations — gold could cool off a bit, but it’s unlikely to lose its festive glow. However, do ensure to do your own research before investing.