As the Diwali gold buying season 2025 approaches, investors and jewellers alike are preparing for one of the most influential events in the global gold market. India, the world’s second-largest consumer of gold, has a unique relationship with the precious metal, and its festival-season demand often sets the tone for global price trends.
Why Diwali Matters for Gold in 2025
Diwali is considered the most auspicious time of year to buy gold in India. Families purchase jewellery, coins, and bars as symbols of prosperity and good fortune. According to our FirstGold Diwali Gold Demand Report 2025, close to 160 tonnes of gold is purchased during the Diwali period, providing a powerful boost to physical demand.
Seasonal Price Performance
History shows that October and November are the stand-out months for gold price performance, largely thanks to India’s festival and wedding seasons. This seasonal demand often aligns with global macroeconomic factors such as Federal Reserve policy, inflation, and currency movements—giving gold a strong foundation heading into year-end.
Income Growth Equals Gold Demand Growth
One key insight from our research: a 1% rise in Indian incomes results in an equivalent 1% increase in gold demand. This strong correlation highlights how deeply gold is woven into Indian culture—not just as adornment, but as a secure form of savings and investment.
India’s Role in the Global Gold Market
India’s gold appetite continues to be a reliable barometer for the global market. Whether in rural villages or urban financial centres, households see gold as both a symbol of wealth and a long-term store of value. As Diwali 2025 approaches, this demand is expected to play a decisive role in shaping global price trends.
