Do gold prices go up during Diwali?

Every year, stories appear saying gold prices always climb during Diwali. It feels like it should be true. After all, the world’s biggest festival associated with buying gold must surely send prices soaring? 

As with most things in the world of finance and investing, the reality is a little more complex.

The origins of Diwali 

Every festival has its origin story, and Diwali is no different. Diwali is a festival over five days and Dhanteras is the first day of celebration – and usually the one which is associated with gold.

The tale goes like this: the 16-year-old son of King Hima, was fated to die from a snakebite just days after his wedding. His wife, determined not to lose him, filled their doorway with gold, silver and shining ornaments. She lit rows of lamps and kept him awake all night with songs and stories. When Yama the God of Death came in the form of a serpent, the glow of the lamps and coins dazzled him. Instead of entering he lingered outside listening to the stories until dawn before slipping away. The prince lived and Dhanteras became a day associated with light, protection and prosperity.

The significance of gold and Diwali

It also became auspicious for making new purchases, especially gold. That tradition lives on and gold buying is symbolic of warding off misfortune and inviting good luck for the year ahead. Add the wedding season which follows and you’ve got one of the busiest times for gold demand in India.

Demand for gold jewellery can jump by as much as 30 to 40% on Dhanteras. And families who buy, tend to opt for gold coins, bars and bangles as gifts or investments. 

It’s a moment where centuries of belief and modern consumer behaviour meet, showing just how deeply gold is woven into the fabric of Indian culture.

When is Diwali in 2025?

This year, Diwali falls on 20 October 2025. Buying usually ramps up in the weeks before and carries into the post-festival wedding rush.

If the date feels like it shifts around each year, that’s because it does. Diwali is set by the lunar calendar, not the Gregorian one. It always falls on the darkest new moon night of the Hindu month of Kartika, which usually means October or November in the UK calendar. So one year you might see Diwali in late October, another in mid-November. 

How gold prices are set

Before we look into whether Diwali actually pushes up the price of gold, let’s look at how gold prices are fundamentally calculated 

The global ‘spot price’ of gold is determined on international markets and therefore not moved by one individual thing. Demand from jewellers, investors and even central banks can push prices up, while new mining supply or higher interest rates can cool them down. Inflation and global turmoil tend to send investors flocking to gold, while investor mood (and the strength of the US dollar) can add more twists. Even the production of technology has a small influence, as gold is needed in everything from phones to spacecraft. In other words, gold’s price is a cocktail of economics, sentiment and circumstance which is why it never stays still for long.

What happens to gold prices during Diwali?

These forces that drive gold prices are far bigger than any festival. So the short answer is that Diwali doesn’t affect gold prices, not consistently on a global scale anyhow.

This chart shows global gold prices over a 10-year period, with the hatched lines showing the months when Diwali occurred that year. When we look at this data from the past decade, the pattern is mixed. Sometimes up, sometimes down, sometimes steady. The belief that gold always climbs during Diwali doesn’t hold water when you check the numbers. 

For instance in 2021 and 2024, prices rose around Diwali, while in 2015, 2016 and 2022, they fell. Other years were flat.

So why do people think gold prices go up during Diwali?

So while it’s true that global or overall gold prices aren’t hugely influenced by Diwali, local markets have their own layers. In India, premiums are added on top of the global price to reflect taxes, import duties and local demand. That’s why the price of gold in Delhi isn’t just the same as the price in London.

So while Diwali definitely drives up demand in India, it isn’t enough to move global prices every time. 

Diwali demand

In the run-up to Diwali 2025, the numbers already show the scale of India’s appetite for gold. As one of the world’s largest consumers, India regularly accounts for around a quarter of global demand, and the festival season only magnifies that pull. The World Gold Council reported that in August 2025 imports hit US$5.2 billion, up 37% from July as jewellers stocked up ahead of the celebrations. We’ve seen it before too; in October 2023, India’s gold imports surged to a 31-month high, nearly doubling year-on-year to over US$7 billion as retailers scrambled to meet Diwali demand.

What this means for buyers and sellers

• If you’re buying don’t assume Diwali will push prices up. Keep an eye on the global spot price and compare UK offers before you buy. Buying in India might feel traditional, but premiums and taxes often make it more expensive than buying at home.
  
• If you’re selling, timing it with Diwali won’t guarantee you more money. The fairness of the buyer’s pricing matters far more than the festival date.

Tips for buying gold during Diwali

• Use an online calculator to check the value of what you’re buying or selling.
• Compare offers across platforms so you’re not caught out.
• If you’re gifting, coins and small bars are practical. They’re easy to value, easy to resell and still carry cultural meaning too. 

How Gold Bank can help

At Gold Bank we’ve spent more than 30 years helping people buy and sell gold with confidence. Our 4.3-star Trustpilot rating reflects the secure processes and personal support our customers value. We offer instant valuations, fully insured home collections and fast, secure payments. Whether you’re buying gold for Diwali or selling old jewellery, we’ll make sure you get a fair deal.

Diwali is one of the most important gold-buying moments of the year so make sure you’re getting a fair, transparent deal. Take a look at our gold bullion if you’re looking for a trusted retailer.