Gold demand in India is expected to remain strong during Dhanteras 2026, with jewellers anticipating higher sales compared to last year. Positive advance bookings and increased interest from customers ahead of the festive season have improved expectations for the jewellery industry. However, fluctuations in international gold prices following the US midterm election results could influence actual sales during the festival.
Surendra Mehta, National Secretary of the India Bullion and Jewellers Association (IBJA), expects gold sales to increase by around 12% this Dhanteras. Earlier, the association had projected annual growth of 7% to 10%.
According to Mehta, rising gold prices could attract more buyers as many consumers continue to consider the precious metal a reliable investment for preserving wealth.
Gold Sales May Increase by 10% to 12% This Dhanteras
Jewellery industry representatives are optimistic about the upcoming festive season, supported by advance bookings and improved customer interest.
The IBJA has also indicated that developments following the US midterm elections could influence global economic conditions. The results may affect President Donald Trump’s military actions, potentially easing pressure on oil prices and the global economy.
Nitin Kedia, National General Secretary of the All India Jewellers and Goldsmiths Federation (AIJGF), has also projected positive growth in festive sales.
He said the industry expects gold sales to increase by approximately 10% compared with last year’s Dhanteras and Diwali season.
According to Kedia, bullion sales and advance bookings recorded during the 20 days before the festival provide an indication of improving consumer confidence. Both industry associations have reported encouraging trends ahead of the festive period.
24-Carat Gold Prices Rise Nearly 4.56% in Two Days
International gold prices have also shown significant movement. On November 5, gold prices in the global market climbed nearly 2%, reaching their highest level in two weeks. A weaker US dollar and declining US Treasury yields following gains by Democrats in the US midterm elections supported the rise.
Gold prices in India also recorded a sharp increase. The price of 24-carat gold climbed approximately 4.56% within two days, rising from around ₹13,979 per gram on November 3 to ₹14,617 per gram on November 5.
The increase in prices is influencing buying decisions, particularly among customers planning jewellery purchases during Dhanteras.
Gold Buyers Prefer Lightweight Jewellery Amid Rising Prices
Higher gold prices are changing consumer purchasing patterns. Instead of completely avoiding jewellery purchases, many customers are opting for lighter designs and smaller quantities to manage their budgets.
According to Crisil Ratings, sales volumes at organised gold jewellery retailers could decline by 4% to 6% year-on-year during the current financial year. This follows an 8% decline recorded in the previous financial year.
However, higher gold prices are expected to increase industry revenues by approximately 20% to 21%. Improved revenue realisation could support cash flows and help maintain the credit profiles of organised jewellery retailers.
Himank Sharma, Director at Crisil Ratings, said festive demand is expected to remain healthy, although the growth will largely come from higher sales value rather than an increase in the actual quantity of gold sold.
Jewellers Report Improving Demand Ahead of Dhanteras
After experiencing relatively slow business for two to three months, jewellery retailers are beginning to see stronger customer interest as the festive season approaches.
Suvankar Sen, Managing Director and CEO of Senco Gold & Diamonds, said customer demand has started recovering after a sluggish period. The company expects its sales value to grow by 20% to 25% compared with last year.
Kalyan Jewellers has also reported an improvement in customer footfall across its stores over the past few days.
Overall, the jewellery industry is expecting a positive Dhanteras season, supported by advance bookings, higher gold prices and improving customer interest. However, the final sales performance will depend on consumer spending patterns and movements in gold prices during the festive period.
Disclaimer: This article is intended for general informational purposes only. Gold prices and jewellery market estimates are subject to change depending on domestic and international market conditions. Sales growth projections represent industry expectations and are not guaranteed results. Readers should check the latest gold rates with authorised jewellers before making purchasing decisions.