Should You Buy Gold Before Diwali and Hold Until US Election? Here’s What Experts Say

Gold prices have been climbing steadily, hitting record highs in recent days. On Friday, gold reached ₹77,839 per 10 grams in India, while global prices hit $2,722 per ounce. Experts believe this surge is due to a combination of global uncertainty, expected interest rate cuts, and the upcoming US Presidential election.

Why Are Gold Prices So High?

Sugandha Sachdeva from SS WealthStreet explains that the main reasons behind the price increase are geopolitical tensions, potential interest rate cuts, and uncertainty about the US election. She says these factors are pushing gold prices up, making it a hot topic for investors ahead of Diwali 2024.

Is Buying Gold Before Diwali a Good Idea?

Colin Shah, Managing Director of Kama Jewelry, advises buying gold before Diwali. He points out that gold is considered auspicious in India, especially during the festival of Dhanteras, when demand traditionally spikes. He adds that with the current global situation and rising demand, now may be a good time to invest.

What About the US Presidential Election?

Shah also highlights the potential impact of the upcoming US election, saying it could bring more market volatility. The election, combined with decisions on US interest rates, could make gold an even more attractive investment in the coming weeks.

5 Factors Driving Gold Prices Right Now

1. Geopolitical Uncertainty: Ongoing conflicts, especially in the Middle East, are pushing investors to seek the safety of gold.
2. US Interest Rates: Falling inflation in the US suggests the Federal Reserve may cut interest rates, which could further boost gold’s appeal.
3. US Presidential Election: The outcome of the election could lead to changes in policies, adding more uncertainty and possibly lifting gold prices.
4. Global Monetary Easing: Central banks around the world, including in Europe, are lowering interest rates, which is supporting the rise in gold prices.
5. Diwali Season: In India, the festive season, especially Diwali, traditionally sees higher demand for gold, which could keep prices rising.

Should You Hold Gold Until After the US Election?

According to Sachdeva, buying gold before Diwali could be a smart move due to the festive demand. Holding onto it until after the US election may give investors a chance to benefit from any further price increases caused by political uncertainty. She advises considering an exit after the election to lock in potential gains.