Why Is Gold Getting Expensive This Raksha Bandhan? How Festival Demand Pushes Gold Rates Higher In India
Gold prices are rising ahead of Raksha Bandhan 2026. Discover how festive demand, limited supply, global cues and upcoming weddings can push precious metal prices higher in India.
The festival session is here, and everyone is looking at the gold and silver prices fluctuating. According to market enthusiasts, these prices are not going to stop rising until the end of the year. Gold prices are always affected by global cues. Interestingly, in India, when the festive season arrives, it brings excessive gold demand. This surge in demand pushes prices sky high domestically. Although India imports a large sum of it's gold from around the world and Global factors set the broader direction. But India's festive season demand can add domestic buying pressure.
As Raksha Bandhan is a day away, the surge in gold prices is now more visible and drastic. Festive demand always rises quickly and faster than the expections of sellers, putting pressure on supply. This imbalance in demand and supply push prices higher, making gold increasingly expensive for the common man.
What is the actual Gold price today?
While we talk about the surge in price and the reasons behind it, 24 carat gold has crossed the bar and is at 1,67,673. If we listen to what the experts predict, the prices are going to rise further, because this is just the start. Dhanteras, Diwali, and the wedding season are the upcoming events where we will see more spikes.
| Gold Purity | Price per Gram | Price per 10 Grams |
| 24-Karat Gold (99.9% purity) | Rs16,767 | Rs1,67,673 |
| 22-Karat Gold (91.6% purity) | Rs15,436 | Rs1,54,360 |
| 18-Karat Gold | Rs12,639 | Rs1,22,930 (approx) |
During the same period last year, gold prices were much lower than today. Last year, the central bank of India bought a lot of gold to keep the flow of the economy stable. This kept the gold rates stable and controlled. The geopolitical conflict, trade war, and tax and import duty since then have caused the gold prices to take a leap.
| Gold Purity | Price per Gram (Aug 2025) | Price per 10 Grams (Aug 2025) |
| 24-Karat Gold (99.9% purity) | Rs10,150 | Rs1,01,500 |
| 22-Karat Gold (91.6% purity) | Rs9,300 | Rs93,000 |
| 18-Karat Gold | Rs7,615 | Rs76,150 |
Comparing last year to your current figures shows an increase of roughly 65% year-over-year.
How do the Gold prices increase?
why Gold price spikes in India around festivals
The biggest question every curious mind that tracks gold and silver prices has is, why do prices rise whenever there's a festival around the corner in the nation. Indians have a habit of stocking when they want. According to gold experts and jewellers, families start buying precious metals ahead of time as an asset. 7 out of 10 people plan to buy gold around festivals six months before festivals arrive. India’s Festive Gold Rush Starts Before the Celebrations
Festive Gold Buying Starts Weeks Early: August to February has festivals, weddings, gifting, bridal jewellery and family celebrations, tying gold demand up for more than one quarter. Pre-stocking starts early, so, wholesalers and jewellers usually order a bulk lot of jewellery 4-6 weeks before the peak festive dates, to keep their display counters satisfactorily stocked. Prices before the occasion, This pre-booking trend beats the market before the peak and actual celebrations arrive. This ends up with an early rise in prices of gold around festivals.
Disclaimer: Gold prices are subject to market fluctuations and may vary by city, jeweller, taxes, making charges, and other factors. Prices mentioned are indicative and for informational purposes only. This article is only for educational purposes, and not an investment advice.
Aishwarya Samant is a journalist with over 4 years of experience navigating the fast-paced corporate media landscape. She specializes in decoding business news, world economy, personal finance, and stock market trends, often adding a subtle touch of political perspective to keep things interesting.
Having worked with reputed organizations like ZEE, TV9, News24, and NewsX, she is no stranger to the newsroom hustle and the demands of real-time storytelling. Her writing style is fast-paced, engaging, and crafted to connect seamlessly with diverse audiences across platforms. She approaches every story from the reader’s point of view, breaking down complex topics into clear, relatable narratives backed by solid facts and credible sources. While she’s confident in expressing strong viewpoints, she ensures balance with insights. Sharp, fact-driven content that informs, engages, and keeps readers coming back for more.
