Gold prices started the day higher on the MCX on Friday, November 7, following global trends and a weaker US dollar. At 9:15 am, MCX Gold December futures were up by 0.27% at Rs 1,20,939 per 10 grams, while silver futures increased by 0.60% to Rs 1,47,938 per kg. The rise in gold prices globally was driven by expectations of a US Fed rate cut in December and a surge in safe-haven demand due to the ongoing US government shutdown.
By the end of the trading day, gold slightly decreased by 0.02% to Rs 1,21,083 per 10 grams, while silver maintained its strength with a 0.04% increase to Rs 1,47,789 per kg. With the peak of the wedding season approaching, families are now contemplating whether to purchase gold now, later, or not at all.
The upward momentum in gold prices over the years has been supported by substantial central bank purchases and geopolitical uncertainties. Nilesh D Naik, Head of Investment Products at Share.Market (PhonePe Wealth), highlighted that since 2022, aggressive buying of gold by emerging market central banks has been a major driving force behind price movements. Additionally, global gold ETFs acquired nearly 600 tonnes by September. While there may be a temporary slowdown in ETF purchases due to recent price adjustments, central banks are expected to remain active in the market.
Geopolitical tensions, partly triggered by the freezing of Russian assets, have led countries to diversify their reserves, further bolstering gold prices. In the domestic market, buyers are facing higher prices, but the demand for gold has not waned; instead, it has evolved. Parag Shah, CEO of KISNA Diamond and Gold Jewellery, emphasized the resilience in gold prices during the wedding season, driven by festive and bridal demands. Consumers are now opting for diamond-studded gold, lightweight 18KT pieces, and Polki-diamond blends, catering to millennial brides seeking a blend of tradition and modern aesthetics.
Shah advised families to budget for 22KT gold in the range of Rs 11,000–Rs 13,000 per gram during the peak wedding months, with some moderate price fluctuations. He suggested early planning and staggered purchases to optimize budgets. Naik recommended a similar strategy from an investment perspective, proposing the use of gold ETFs or gold mutual funds for gradual accumulation, followed by liquidation for physical purchases when necessary.
Gold continues to hold a significant place in Indian weddings, but its companions in the jewelry landscape are evolving. Diamonds, lightweight gold, 18KT pieces, and modern hybrids are gaining popularity as complementary choices to traditional gold jewelry. The evolving trends reflect a shift towards mindful gold purchases, emphasizing phased buying, digital gold investments, and blending classic designs with contemporary styles to maintain the celebratory spirit without straining budgets.