As Diwali 2024 approaches, the festive spirit is vibrant across India, with consumers preparing for celebrations marked by traditional gifting and indulgence in sweets.

Gold Prices Soar

Gold purchases, a significant aspect of Diwali celebrations, have seen considerable price increases this year. As of October 31, 2024, gold prices surged to around ₹62,000 to ₹62,500 per 10 grams, translating to about ₹6,200 to ₹6,250 per gram. This marks a striking 34% increase compared to the same period last year. The rising costs have led many consumers to rethink their buying strategies, often opting for lower-karat gold to maintain their festive traditions without overspending.

Factors driving these price fluctuations include global economic conditions, inflation rates, and changes in the rupee's performance against the dollar. Additionally, heightened festive demand plays a crucial role in pushing prices higher. Major city gold prices per gram as of late October are:

New Delhi: ₹7,390
Mumbai: ₹7,375
Kolkata: ₹7,375
Chennai: ₹7,375
On the Multi Commodity Exchange (MCX), gold futures for December 2024 were priced at ₹78,840 per 10 grams, reflecting a slight increase due to ongoing demand.

Sweet Sales on the Rise

Simultaneously, sweet sales in India are projected to reach an astounding ₹35,000 crore (approximately $4.2 billion). This surge highlights a growing demand for traditional sweets, bakery products, and chocolates as families prepare for the festivities. A survey indicates that about 53% of consumers prefer sweets, bakery products, or chocolates as gifts during Diwali. In states like Tamil Nadu, sweet sales are expected to reach around ₹5,000 crore.

Local shops and larger retailers are gearing up for high customer traffic, as many consumers opt for in-person shopping to select their favorite festive treats. The emphasis on local shopping underscores the importance of traditional gift-giving during Diwali, with sweet shops bustling as families plan their purchases.

With the interplay of rising gold prices and a robust demand for sweets, this year's Diwali promises to be a memorable celebration filled with cherished traditions and delightful treats.

Wishing you a joyful and prosperous Diwali from the NexNews Network!