India's Gold Buying Surges Despite Record Prices During Dhanteras

Gold demand remains strong in India as prices reach new highs, driven by festive purchases and economic uncertainties.

Gold prices in India have risen by over 30% since last year's Diwali, reaching record highs during the Dhanteras festival.
Despite high prices, Indian consumers continue to buy gold, seeing it as a safer investment compared to the volatile stock market.
The increased demand for gold and silver during Dhanteras is expected to further widen India's trade deficit and put pressure on the rupee.
In Delhi, consumers are opting for minimal and lightweight gold jewelry due to the high cost, with a preference for lower caratages and versatile designs.
Global factors such as geopolitical tensions, a strengthened US dollar, and macroeconomic data are influencing the gold market, contributing to its appeal as a safe-haven asset.