{"id":499,"date":"2025-09-22T11:32:23","date_gmt":"2025-09-22T10:32:23","guid":{"rendered":"https:\/\/insights.goldbank.co.uk\/insights\/?p=499"},"modified":"2025-09-22T11:32:24","modified_gmt":"2025-09-22T10:32:24","slug":"do-gold-prices-go-up-during-diwali","status":"publish","type":"post","link":"https:\/\/goldbank.co.uk\/insights\/do-gold-prices-go-up-during-diwali\/","title":{"rendered":"Do gold prices go up during Diwali?"},"content":{"rendered":"\n

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Every year, stories appear saying gold prices always climb during Diwali<\/a>. It feels like it should be true. After all, the world\u2019s biggest festival associated with buying gold must surely send prices soaring? <\/p>\n\n\n\n

As with most things in the world of finance and investing, the reality is a little more complex.<\/p>\n\n\n\n

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The origins of Diwali\u00a0<\/h4>\n\n\n\n

Every festival<\/a> 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.<\/p>\n\n\n\n

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<\/a> 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.<\/p>\n\n\n\n

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The significance of gold and Diwali<\/h4>\n\n\n\n

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\u2019ve got one of the busiest times for gold demand in India.<\/p>\n\n\n\n

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<\/a>, bars<\/a> and bangles as gifts<\/a> or investments.\u00a0<\/p>\n\n\n\n

It\u2019s a moment where centuries of belief and modern consumer behaviour meet, showing just how deeply gold is woven into the fabric of Indian culture.<\/p>\n\n\n\n

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When is Diwali in 2025?<\/h4>\n\n\n\n

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

If the date feels like it shifts around each year, that\u2019s 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. <\/p>\n\n\n\n

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How gold prices are set<\/h4>\n\n\n\n

Before we look into whether Diwali actually pushes up the price of gold, let\u2019s look at how gold prices are fundamentally calculated <\/p>\n\n\n\n

The global \u2018spot price\u2019 of gold is determined on international markets<\/a> 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\u2019s price is a cocktail of economics, sentiment and circumstance which is why it never stays still for long.<\/p>\n\n\n\n

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What happens to gold prices during Diwali?<\/h4>\n\n\n\n

These forces that drive gold prices are far bigger than any festival. So the short answer is that Diwali doesn\u2019t affect gold prices, not consistently on a global scale anyhow.<\/p>\n\n\n\n

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\u2019t hold water when you check the numbers. <\/p>\n\n\n\n

For instance in 2021 and 2024, prices rose around Diwali, while in 2015, 2016 and 2022, they fell. Other years were flat.<\/p>\n\n\n\n

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So why do people think gold prices go up during Diwali?<\/h4>\n\n\n\n

So while it\u2019s true that global or overall gold prices aren\u2019t 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\u2019s why the price of gold in Delhi isn\u2019t just the same as the price in London.<\/p>\n\n\n\n

So while Diwali definitely drives up demand in India, it isn\u2019t enough to move global prices every time. <\/p>\n\n\n\n

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Diwali demand<\/h4>\n\n\n\n

In the run-up to Diwali 2025,<\/a> the numbers already show the scale of India\u2019s appetite for gold. As one of the world\u2019s 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<\/a>, up 37% from July as jewellers stocked up ahead of the celebrations. We\u2019ve seen it before too; in October 2023, India\u2019s gold imports surged to a 31-month high<\/a>, nearly doubling year-on-year to over US$7 billio<\/a>n as retailers scrambled to meet Diwali demand.
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What this means for buyers and sellers<\/h4>\n\n\n\n