Gold rates on October 10: Prices climb as buying picks up ahead of Dhanteras, Diwali

The prices have gone up 3.1 percent in a week, climbing from around Rs 11,723 on October 3 to Rs 12,085 on October 10, according to IBJA data. This rise has been consistent across all categories of the metal.

The upward trajectory has not deterred customers from buying jewellery. Investors, too, are entering the market despite steep prices.

Why are rates so high?

Some of the spike is cyclical. A large number of people buy gold around Dhanteras and Diwali, leading to a demand spike. Along with domestic demand, global factors are also at play. Global investors are turning to gold as a safe haven amid geopolitical and  trade uncertainties even as a falling rupee makes imports expensive, pushing up prices.

What does it mean before Dhanteras shoppers?

For families planning purchases this Dhanteras and Diwali, the rally makes the yellow metal quite expensive.

Investors see the rally as reinforcement of gold’s role as a hedge against inflation and uncertainty, though sharp price gains suggest some caution in the short term.

Also read | Here is a checklist when you go shopping for gold this Diwali

Outlook through Diwali

The pre-Dhanteras and Diwali period is the busiest for India's gold demand. Cultural sentiment is bullish, imports are expensive, and international risk remains, so the price is also set to hold steady, experts say. There is minimal respite on the horizon before the festival season is over, but the dual role of gold as ornamentation as well as investment makes the metal extremely sought after.