Reports say that the demand for ornaments is expected to dip by up to 27 per cent from a year-ago in volume terms during the buying period
With record bullion prices shifting shoppers towards less costly alternatives, gold jewellery sales in India are set to drop during the festival season. Reports noted that the demand for ornaments is expected to dip by up to 27 per cent from a year-ago in volume terms during the buying period.
High costs are driving the consumers in big cities to postpone spending. Reports added that jewellery accounts for about 70 per cent of the country’s total bullion consumption. Local prices are hovering above Rs 1,00,000 per 10 gram. Global spot prices have increased in the last two years and hit an all-time high of USD 3,791.10 per ounce.
The reports emphasised that India bought 17 per cent less jewellery between April and June than a year earlier. Total purchases of precious metal dropped in 2025 to record levels, report added. However, aided by sustained investment interest, wedding and occasions-related jewellery purchases, gold demand could strengthen during the peak festive period (October – December), as per a World Gold Council report.
The demand could get a potential boost from consumption tax cuts as well. However, elevated prices and any renewed surge may curb overall demand, the report warned. Gold prices saw a sharp upswing in late August, with the rally accelerating through the first half of September to hit fresh all-time highs. This pushed year-to-date gains to 40 per cent. International gold prices climbed 4 per cent in August and added another 6.7 per cent in early September as bullish sentiment deepened.
Gold prices in India have closely mirrored international movements, with a weaker rupee (down 3 per cent year-to-date) magnifying domestic price gains. As of mid-September, prices had risen 7 per cent month-to-date to Rs 1,06,863 per 10 gram, bringing the YTD increase to 44 per cent, the report mentioned.
