Should you buy Gold now or wait for the traditional festival dip?

Many Indians looking to buy gold have asked themselves at least once: Should I buy it now, or should I wait until the prices fall?

March 2026 is no different. The current gold rates in India stand at Rs. 15,966 per gram for 24K gold, and Rs. 14,635 per gram for 22K gold. These are not just elevated numbers; they are a reflection of the global geopolitical tensions, the central bank gold accumulation, and the weakening rupee.

Gold price in Kolkata today, a city in eastern India, stands at Rs. 15,966 per gram for 24K gold, and Rs. 14,635 per gram for 22K gold. In Kolkata, gold is a part of their culture as much as it is a part of the business, especially with the festivities of Durga Puja and the wedding season looming over the horizon. 

However, the question is not just being asked in Kolkata. It is a question that is being asked all over the country. In the blog, we will explore whether it is a good idea to buy gold now or wait until the prices fall due to the traditional festival dip.

Does the traditional festival dip actually exist?

The culture of buying gold on festivals is deeply embedded in Indian culture. Many investors in India have a belief that it is auspicious to purchase gold on festivals or special occasions, which contributed to the rise of gold prices during the festive period. Gold prices soar before Akshaya Tritiya and Dhanteras, since these are two big festivals on which it is considered auspicious to buy gold in the Indian culture.

Historically, Gold prices are lower during summer months, i.e. June-July, as there is no major gold-buying festival or wedding season during this time, and most Indians used to buy Gold during some festival or an occasion.

What is driving Gold prices right now?

The recent jump in gold prices is not just a random market anomaly but a result of several major macroeconomic factors, which have caused the price of gold to soar to new records. Here are the major factors contributing to the gold rally in March 2026:

Geopolitical Turmoil (Safe Haven Demand for Gold)

Gold is the ultimate hedge against uncertainty. As tensions rise in the Middle East, especially between the US and Iran, the price of crude oil has touched new highs above $120 a barrel. This has caused a wild rollercoaster ride for equities around the globe, with investors shifting to safe-haven assets like gold.

Aggressive central bank accumulation

We are witnessing a historic shift in the way nations are building their foreign exchange reserves. Central banks across the world, including the Reserve Bank of India, are accumulating gold to diversify their national reserves away from the US Dollar.

The depreciating rupee

As India imports the vast majority of its gold, the price of gold is directly linked to the USD-INR exchange rate. As the Rupee continues to weaken, touching new lows against the US Dollar, the domestic price of gold rises even if the international price remains stagnant.

Read More: 5 Key PAN Rule Changes in Draft Income Tax Rules That Could Impact Daily Transactions

Buy now or wait?

The answer to buy gold now or wait for a correction to occur in gold prices is completely dependent on the individual’s gold buying objective, such as:

• If you are buying gold for a wedding or a special occasion, purchase now and negotiate aggressively for lower making charges. Jewellers often offer zero-making-charge schemes during the pre-festival period. Waiting for more price decreases can result in a further increase in the gold prices, and the dip you are waiting to happen may come after your need ends, making buying gold meaningless.
• If you are buying only with the purpose of investment, then you should wait because the June–July window has historically offered the year’s lowest seasonal gold prices. If you have no deadline or urgent need, waiting until that window, but it requires tracking of gold prices on a daily basis. 
• If your goal is pure price appreciation, reconsider if physical gold is the right investment vehicle for you because Gold ETFs eliminate jewellery making charges and dealer premiums but still reflect domestic gold prices. You can also consider Sovereign Gold Bonds (SGBs) as an alternative investment option to buying physical gold.

The bottom line

The traditional festival dip in gold price actually exists, but it is useful only for a limited section of investors. In 2026, structural forces are playing a major role in driving the changes in the domestic gold prices. Factors like Central bank demand, rupee weakness and geopolitical risk are the major factors responsible for driving movements in domestic gold prices.

Before buying gold, check the gold rate today and the gold price in your city every morning, as every city has slight differences in their gold prices on IBJA’s portal in order to make informed gold buying decisions. Thus, buy gold when the gold prices are relatively soft on a specific day.

We’re now on WhatsApp. Click to join. 

Like this post?
Register at One World News to never miss out on videos, celeb interviews, and best reads.