Gold prices are under pressure just before Dhanteras and Diwali, according to reporting by Livemint. The report also carries expert views and price targets for interested buyers.
For you, a softer price can mean a lower cost per gram. It can also hurt if your gold is pledged for a loan. Don't rush. Plan your purchase and check your loan cushion.
Key takeaways
- Gold is facing selling pressure ahead of the festive season, as reported by Livemint.
- Experts' targets are only views. Nobody can promise where the price goes next.
- Buyers can split a purchase into parts instead of betting on one day.
- A falling price lowers the loan amount your gold can fetch.
How gold price pressure works
Gold's price rises and falls with demand and supply. Festive weeks usually bring more buying in India. Even so, prices can slip when global investors sell. A festival doesn't guarantee a rise.
"Under pressure" means sellers are winning for now. It doesn't tell you where the price will end up. Experts often give targets. Treat them as one opinion, not a promise.
Check the latest rate on our daily gold price page before you decide.
What a lower price means for your money
If you plan to buy jewellery, a lower rate cuts the cost per gram. If you already hold gold, its value falls on paper. If you have a gold loan, the lender's safety cushion gets thinner.
Lenders only lend a share of your gold's value. This share is called loan-to-value, or LTV. RBI rules set limits on it. The cap is 75% for larger loans and higher for small ones.
Here's an example for 20 grams of gold at a 75% LTV. The prices are made up to show the maths. They are not today's rates.
| Gold price per gram | Value of 20 grams | Loan at 75% LTV |
|---|---|---|
| ₹10,000 | ₹2,00,000 | ₹1,50,000 |
| ₹9,500 | ₹1,90,000 | ₹1,42,500 |
| ₹9,000 | ₹1,80,000 | ₹1,35,000 |
| ₹8,000 | ₹1,60,000 | ₹1,20,000 |
Now say you already owe ₹1,50,000 on that gold. At ₹8,000 a gram, your loan is nearly 94% of the gold's value. The lender could ask you to pay part of the loan or add more gold. See per-gram values on our gold loan rate page.
Who is affected
- Festive buyers: You may pay less per gram, but making charges and GST still add up.
- Gold loan holders: A falling price can push your LTV higher.
- New borrowers: You'll get a smaller loan for the same gold if the price drops.
- Coin and bar holders: Your savings dip on paper. They only turn into a loss if you sell.
What to do now
A calm plan works better than a guess about the price.
- Set your budget before you walk into the shop.
- Buy in two or three parts over a few days.
- Ask for the rate per gram, making charges and GST in writing.
- Look for the hallmark on every piece.
- If you hold a gold loan, ask your lender for your current LTV.
- Keep some cash ready in case the lender asks for a top-up.
Need a loan against your gold? Start with our gold loan guide and compare lenders.
Frequently asked questions
Should I buy gold before Dhanteras if the price is falling?
There's no sure answer. If you need gold for the festival, buy in parts so you don't bet everything on one day.
Will my gold loan amount fall if the gold price drops?
A new loan will be smaller, because lenders use the current price. An existing loan stays the same. The lender may ask for a top-up if your LTV gets too high.
Are expert price targets reliable?
They are informed opinions, not guarantees. Use them as one input, along with your budget and your need for the gold.
BankCreds analysis
This news matters less than the headline suggests. A dip before a festival doesn't tell you the price has hit bottom. Experts' targets are views, and they can be wrong.
Who gains and who loses
Take a family that wants 10 grams of jewellery for Diwali. If the rate is ₹500 lower per gram, they save ₹5,000 on the metal. Making charges and GST can add far more than that, so compare shops too.
The bigger risk is for gold loan holders. A lower price shrinks the cushion between your loan and your gold's value. If you borrowed close to the limit, check your loan this week. Don't skip a repayment hoping the price will bounce back.
For most people, the best move is calm and simple. Buy only what you need. Split the purchase. Keep your loan well below the limit.
This section is BankCreds' own assessment of what the development means for Indian borrowers and savers. It is independent commentary, not part of the source reporting above.
Sources & references
- Livemint — originating report https://www.livemint.com/market/commodities/why-is-gold-price-under-pressure-ahead-of-dhanteras-diwali-what-should-interested-buyers-do-expertss-views-target-11793002314682.html
- RBI Master Directions — Rules on how much lenders can lend against gold (loan-to-value limits) https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx
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Editorial note & disclaimer
How this was reported. The development above is attributed to the source or sources listed. BankCreds does not independently verify a third party's reporting; where a figure or a regulatory position is stated as fact, it is either attributed or drawn from the regulator's own published material. Everything under "BankCreds analysis" is our own assessment.
Rates and figures. Interest rates, per-gram values and premium bands quoted here are indicative, move daily, and differ by borrower profile, city and lender policy. Confirm the final number with the institution before you act on it — the sanction letter or policy schedule governs, not a news report.
Not financial advice. This article is general information for an Indian audience. It is not investment, tax, credit or insurance advice, takes no account of your circumstances, and BankCreds is not a lender, broker, distributor or advisor. Consider speaking to a SEBI-registered investment adviser or a qualified professional before acting.
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