Gold price surge crosses Rs 1.68 lakh as weddings turn unaffordable

For the first time in history, gold has crossed the $5,500 per ounce mark globally, sending shockwaves through Indian markets.

In India, this translates to approximately ₹16,800 per gram for 22K gold, a level once considered unimaginable. What was earlier unthinkable has now become reality, raising one unavoidable question – will gold prices stop here?

In Chennai, the impact is being felt immediately. Twenty-four karat gold is now priced at around ₹1.83 lakh per 10 grams, while 22K gold— the standard for weddings — has crossed ₹1.68 lakh. In just a year, the cost of a traditional 50-sovereign wedding set has jumped from roughly ₹30 lakh to nearly ₹67 lakh.

As prices spiral, concerns are growing over whether gold remains an ornament for the common household or has become a luxury reserved only for the wealthy.

Wedding shock

Rising prices have triggered mixed emotions among buyers. Investors feel reassured as gold strengthens its status as a safe asset, but panic buying has also increased amid fears that prices may climb even higher.

Also read: Silver, gold hit record highs on MCX amid safe-haven buying

“Whenever gold prices rise, people feel excitement and panic at the same time,” said Jayanthilal J Challani, president, Madras Jewellers and Diamond Traders Association (MJDTA). “There is fear that prices may rise further, which pushes people to buy immediately,” he added.

Challani explained that earlier investment patterns allowed for profit booking and price corrections. “This time, that possibility does not exist because the nature of investment has completely changed,” he said.

Global tensions

Geopolitical developments have played a major role in pushing gold prices higher. A diplomatic standoff involving the US and Europe over Greenland has triggered a global flight to safety, weakening confidence in the US dollar and driving investors towards gold.

Recent developments involving Iran have added to market anxiety. Reports of American aircraft carriers moving towards the region and China supplying fighter aircraft to Iran have intensified fears of escalation.

“If such a situation worsens, it is impossible to predict where gold prices will go,” Challani said. “Geopolitical tensions are one of the main reasons behind the recent rise.”

Market slowdown

Economic uncertainty has also shifted investment behaviour. Slowdowns in capital markets are pushing investors away from stocks and towards gold as a safer option.

“When people avoid capital markets due to economic uncertainty, they naturally turn to gold,” Challani said. “Any possibility of war or major geopolitical developments anywhere in the world directly impacts gold prices.”

Also read: Gold breaches Rs 1.5 lakh/10g-mark; silver soars to record Rs 3.23 lakh/kg

India’s dependence on gold imports further amplifies the effect of global price movements, making domestic prices highly sensitive to international trends.

Central bank rush

Beyond geopolitics, aggressive buying by central banks has emerged as a key driver. In 2025 alone, central banks purchased over 1,000 tonnes of gold, signalling a strong move towards de-dollarising reserves.

“Central banks and government treasuries across countries are converting foreign exchange reserves into gold,” Challani said. “This gold will not return to the market, which reduces supply and ensures prices cannot fall.”

Goldman Sachs estimates that China acquired more than 15 tonnes of gold in a single month, far exceeding officially reported figures, highlighting the scale of global demand.

Affordable alternatives

With traditional wedding gold becoming increasingly unaffordable, jewellers are advising buyers to explore lower-karat options.

“People who buy 50 sovereigns are now spending ₹60–70 lakh,” Challani said. “That is why I advise buyers to consider 9K or 14K gold to meet their needs.”

Lower-karat gold significantly reduces costs while still allowing families to purchase jewellery for weddings and ceremonies.

Silver shift

Another growing trend is the move towards gold-plated silver jewellery, especially among younger buyers.

“This is electroplated jewellery that looks exactly like gold,” Challani explained. “Unlike polished jewellery, the colour does not fade and continues to look like gold.”

Also read: Gold, silver futures hit fresh records amid US Fed probe and geopolitical tensions

As gold prices continue to rise, such alternatives are gaining popularity among buyers looking for affordability without compromising appearance.

Digital caution

Experts are also urging caution when it comes to digital gold investments. Physical gold remains the preferred option due to regulatory concerns.

“SEBI has clearly stated that digital gold is not regulated and does not fall under its authority,” Challani said. “If issues arise, investors proceed at their own risk.”

With no immediate signs of a price correction, gold’s transformation from family heirloom to financial shield appears complete—leaving the Indian middle class to redefine what a “budget wedding” truly means.

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