Gold is closing in on the $4,000/oz mark after breaking above $3,900 in early Asian trade. The jump is tied to safe-haven buying and softer rate expectations, pushing bullion to fresh record territory (as reported by Reuters).
The timing matters for Indian households. Diwali-a key period for gold purchases-falls around October 20, 2025 in most calendars, according to the Government of India holiday calendar. That means many families will make jewellery or coin decisions while prices are near peaks.
Demand patterns are shifting at these levels. Trade updates from the World Gold Council say seasonal buying has picked up, but with a tilt toward bars and coins over heavy jewellery as buyers watch budgets. Stores also report more pre-bookings and lighter designs to manage costs.
What’s driving the rally
Investors are leaning on gold as a risk hedge. When rate-cut hopes rise, the opportunity cost of holding a non-yielding asset falls. Add geopolitical and policy uncertainty, and gold’s appeal broadens from central banks to funds and households. The result is strong, persistent demand.
Should you rebalance now?
Start with your target asset mix. If gold has grown beyond your planned share (many diversified plans use roughly 5-15% as a guide, but your plan may differ), consider trimming back to target. If you are below target and want to add, do it in tranches instead of a single festive-season lump sum.
Keep investment and consumption separate
Jewellery carries making charges and GST, so treat it as consumption. For portfolio gold, financial routes like ETFs or other paper gold make rebalancing easier and costs clearer. That way, you can adjust quickly if prices swing after the festival.
Practical tips before Diwali
- Review goals and horizon. Short-term money should not chase record prices.
- Phase your moves. SIP-style additions reduce timing risk.
- Don’t anchor to headlines. Let your plan-not today’s price-decide the action.
Bottom line
With gold near record highs, discipline beats prediction. Rebalance back to your plan: trim if you’re overweight, add gradually if you’re underweight, and keep festive purchases in a separate bucket. This approach works whether the next $100 move is up or down.
