Gold prices fall today: Early festive gold buying trends in 2026, and what the WGC expects next

The falling gold prices may provide a temporary respite to buying in the ongoing festive season, which, according to the World Gold Council (WGC), begun on a wary note earlier this month.

In a report dated September 17, WGC said consumers were holding back discretionary purchases after a sharp rally and an equally sharp pullback in prices over the past two months.

The report, authored by Kavita Chacko, Research Head for India at the WGC, describes the mood in the gold trade as one of "cautious festive optimism."

Gold recorded one of its strongest monthly gains in nearly three decades in August, with the LBMA Gold Price PM rising 13% to $4,386 an ounce. Domestic prices mirrored the move, climbing 12% during the month to ₹1,58,854 per 10 grams. Both have since retreated in September amid shifting expectations around US Fed policy.

WGC said the volatility in gold prices has cooled early festival demand.

"The sharp gold price rally in August, followed by the subsequent pullback, has left many consumers in a wait-and-watch mode, delaying discretionary purchases," the report said. It further said that retailers have been cautious about building inventory, preferring to replenish only on realised demand, while some manufacturers have reported delays in order uptake by retailers.

According to the report, large retailers have fared comparatively better and have stepped up product launches, marketing and promotions, while refining their strategies to favour faster-moving products.

Wedding trends

WGC said that wedding-related demand has been the exception, remaining relatively resilient. However, the report noted a structural shift towards lighter-weight jewellery.

"Despite the recent moderation, the trade remains cautiously optimistic about demand during the peak festive and wedding season," WGC said. It added that physical investment demand remains steady even as some investors shift from physical gold to digital forms.

In coming weeks, the WGC expects demand to improve as the festive and wedding season progresses, supported by steady investment demand and resilient wedding-related buying. However, elevated prices and volatility may continue to constrain discretionary purchases.