Sat Dec 27 02:40:00 UTC 2025: ## Gold Prices Soar to Record Highs in India, Sparking Shift in Buying Habits
New Delhi, India – Gold prices in India have reached unprecedented levels this year, with a significant surge observed just after Christmas. On Friday, December 26th, the price of 24-carat gold jumped to ₹58,000 per 100 grams, or ₹5,800 per 10 grams, setting new record highs across the country.
While Hyderabad saw the lowest prices at ₹140,020 per 10 grams, Chennai recorded the highest at ₹140,620 per 10 grams. This rapid increase in price is pushing gold further out of reach for the middle class, yet surprisingly, demand remains strong.
Consumers are adapting by shifting their preference towards 14 and 18-carat gold, previously primarily used for diamond jewelry. This shift is driven by the affordability of lower-carat gold compared to the traditionally favored 22-carat gold, especially for wedding jewelry. The Ahmedabad Jewellers Association reports that the share of 22-carat gold in wedding jewelry has decreased from 75% to 50% in the last two years, as people seek more affordable options amidst soaring prices.
“With rising gold prices, purchasing 22-carat gold jewelry is not feasible for everyone,” explained a market analyst. “14 to 18-carat gold is emerging as a viable alternative, as weddings remain incomplete without gold jewelry.”
However, not everyone believes this trend will continue. Nilesh Shah, Managing Director of Kotak Mahindra AMC, predicts that the current rally in gold and silver is unlikely to persist into 2026. While maintaining a positive outlook, Shah advises investors to adhere to the principles of asset allocation for better returns. He acknowledged that central bank purchases and industrial demand for silver, particularly from the electric vehicle sector, will continue to support the precious metals market.
First Piper 