Gold Buyers Get a Surprise Before Dhanteras! Prices Fall Nearly 25% From January Peak

Gold prices have retreated sharply from their record highs earlier this year, offering some relief to Indian buyers ahead of Dhanteras and the wedding season. With domestic prices hovering around ₹1.41 lakh per 10 grams, the correction has brought renewed interest in gold purchases, although high prices continue to influence how much consumers are willing to spend.

Gold has fallen around 25% from its January 2026 peak, when domestic prices crossed ₹1.80 lakh per 10 grams. The decline has created a more favourable buying window for households that had postponed purchases during the sharp rally. However, prices remain considerably higher than a year ago, keeping affordability a concern for many families.

The pressure on consumers is also reflected in India’s gold demand figures. According to the World Gold Council (WGC), gold demand fell 29% year-on-year to 162.5 tonnes during the July-September quarter, compared with 229.8 tonnes in the corresponding period last year.

Jewellery demand declined 20% to 99.9 tonnes, while investment demand through bars and coins dropped 40% to 55 tonnes. Despite the fall in volumes, the total value of gold purchases increased 3% to ₹2.42 lakh crore, indicating that consumers continued to spend more money while purchasing smaller quantities.

There are, however, signs of a seasonal recovery. Gold jewellery demand increased 33% compared with the previous quarter, supported by festive purchases and softer prices towards the end of September. The WGC expects the upcoming festive and wedding season to provide further support in the December quarter, although elevated prices could continue to restrict jewellery volumes.

Consumers are also adjusting their buying strategies rather than abandoning the tradition. Many are considering lighter jewellery, smaller gold coins and exchanging old ornaments to manage expenses. Digital gold purchases rose 44% year-on-year to 4.9 tonnes during the September quarter, reflecting growing interest in alternative ways of owning the precious metal.

With Dhanteras falling on November 6, jewellers are hoping the price correction, along with wedding-related purchases, will encourage customers to return to stores. While the decline from January’s peak has improved affordability, the extent of the festive recovery will depend on whether buyers consider current prices attractive enough to resume purchases.