Demand for gold during the Diwali festival in India remained robust amid record-high gold prices, reflecting the beloved metal’s high investment appeal, the World Gold Council (WGC) said.

Supporting demand was what the council described as “festive auspicious buying and bullish sentiment.” 

“Despite record high prices, consumer buying during Diwali was strong in both gold jewellery and bars and coins,” noted WGC. “Markets and media reported higher footfall at jewellery stores and robust buying of coins via online as well as offline platforms.”

It also cited promotional events and marketing campaigns undertaken by jewellers to lift sales, adding that price adjustments since Diwali last year enhanced consumer sentiment, positioning gold as a long-term investment. 

“And volatility in domestic equity markets, coupled with rising international prices, has added to gold’s investment appeal. Anecdotal reports suggest that auspicious ‘token’ purchases were rather broad-based, spanning regions and demographics,” continued WGC.

Gold continued its rally in October for the fourth consecutive month, hitting multiple fresh highs and closing the month with a gain of almost 5 per cent, at US$2,779 per ounce, according to WGC data.

“A price correction or stabilisation could stimulate demand after the peak festive season and during the upcoming wedding season from November to March,” added WGC. “Bullish sentiment is likely to sustain investment interest in gold amid ongoing volatility in equity markets.”