Gold demand during one of India’s key buying festivals stayed muted on Sunday as record prices curbed jewellery purchases, offsetting a modest uptick in investment demand, according to Reuters.
Indians celebrated Akshaya Tritiya, the second-biggest gold-buying festival after Dhanteras, when purchasing precious metals is considered auspicious. Only this time near record gold prices – the precious metal closed just over $4800 – kept buyer enthusiasm rather subdued.
“The sharp rally in prices curbed jewellery demand. In volume terms, buying was lower as consumers held back, though in value terms spending was higher due to elevated prices,” said Amit Modak, chief executive of PN Gadgil and Sons, a Pune-based jeweller.
Since consumers are, like everyone else, subject to the laws of supply and demand, it is natural that a higher price will lead to lower demand. Gold prices hit a record high of $5,594.82 per ounce on January 29 and are now trading just over $4,800.
Gold futures in India, the world’s second-biggest gold consumer, closed at 154,609 rupees ($1,670) per 10 grams on Friday, nearly 63% higher than at the last Akshaya Tritiya festival. Except in a few southern Indian states, demand was lower than normal across the rest of the country, said Surendra Mehta, national secretary at the India Bullion and Jewellers Association. Meanwhile retail buyers have been stacking shifting toward gold coins, which are easier to liquidate, even as jewellers offered discounts on fees for crafting jewellery to attract buyers, said a Mumbai-based jeweller.
The latest decline in demand is an extension of recent trends: India’s jewellery demand in 2025 fell 24% from a year earlier, partially offset by a 17% rise in investment , the highest since 2013, according World Gold Council data.
Gold-buying patterns in India are changing, with purchases no longer concentrated only during festivals as price-sensitive buyers make purchases throughout the year whenever prices dip, said a Mumbai-based bullion dealer with a private bank.
India issued an order on Friday listing banks authorized to import gold and silver, providing relief for banks that were forced to halt imports because the list’s publication was delayed.