Gold Prices Near ₹1.43 Lakh: Should Festive Buyers Wait or Buy Now?

Gold prices near ₹1.43 lakh per 10 grams have put festive shoppers in a difficult position as Karwa Chauth, Diwali and the wedding season approach. With jewellery purchases planned across Indian households, buyers are wondering whether to purchase gold now or wait for prices to fall further.

At the time of the reported market update on October 26, gold on the Multi Commodity Exchange (MCX) was trading at ₹1,42,674 per 10 grams, up 0.46%. However, the outlook remains uncertain, with rising crude oil prices and the US Federal Reserve’s upcoming policy decision likely to influence market sentiment.

Why Gold Prices Are in Focus This Week

Investors are monitoring crude oil prices, inflation expectations and signals from the US Federal Reserve. Higher oil prices can add to inflationary pressures, potentially reducing the scope for interest rate cuts. Higher bond yields and a stronger US dollar may then weigh on gold, which does not generate regular interest income.

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However, central-bank purchases, investment demand and concerns about government finances continue to support the precious metal.

Market expert Ponmudi R, CEO of Enrich Money, said MCX gold was attempting to stabilise after last week's decline, trading within support and resistance levels.

Will Rising Crude Oil Prices Hurt Gold?

The relationship between crude oil and gold is indirect rather than consistent. Both assets may attract attention during geopolitical uncertainty, but sustained oil price increases can raise inflation expectations and bond yields, putting pressure on bullion.

Manav Modi, commodities analyst at Motilal Oswal Financial Services, said gold was holding around the $4,000 level, supported by investment demand, central-bank buying, fiscal concerns and some moderation in Treasury yields.

A stronger dollar and rising yields could weigh on prices, while easing oil prices and softer inflation expectations could offer support. For Indian consumers, international gold prices are only part of the picture. The rupee-dollar exchange rate, import costs and domestic market conditions also influence local rates.

Should Buyers Wait Until Diwali?

For people purchasing jewellery for a fixed occasion, waiting for a major price correction can be risky. Gold could become cheaper if the dollar strengthens and yields rise, but renewed uncertainty or stronger investment demand could also push prices higher.

Buying in stages may help households spread their purchases across different price levels. Buyers should also remember that MCX rates do not represent the final jewellery bill, which includes applicable taxes and making charges.

Is Gold a Good Long-Term Investment?

The decision depends on the purpose of the purchase. Jewellery buyers with an upcoming occasion may prefer to prioritise their budget and deadline rather than trying to predict the exact market bottom.

Long-term investors, meanwhile, may consider spreading purchases over time instead of committing their entire allocation at once. Gold can diversify a portfolio, but prices can fluctuate sharply and the metal does not provide regular income.

Jewellery also carries making charges that may not be recovered on resale. Gold exchange-traded funds and other regulated investment products have different costs and risks, making it important to compare options against individual financial goals.

For festive buyers, the practical approach is to avoid relying on a single price forecast. A planned budget, staged purchases where feasible and a clear understanding of the final jewellery cost can help reduce uncertainty.