Gold demand during one of the country’s key buying festivals stayed muted as record prices curbed jewellery purchases, offsetting a modest uptick in investment demand.
Indians celebrated Akshaya Tritiya, the second-biggest gold-buying festival after Dhanteras, when purchasing precious metals is considered auspicious.
“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.
Gold prices hit a record high of US$5,594.82 per ounce on Jan 29 and are now trading at around US$4,861 (RM19,220).
Gold futures in India, the world’s second-biggest gold consumer, closed at 154,609 rupees (RM6,590) per 10 grammes 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.
Retail buyers have been shifting toward gold coins, which are easier to liquidate, even as jewellers offered discounts on fees for crafting jewellery to attract buyers.
India’s jewellery demand in 2025 fell 24% from a year earlier, while investment demand rose 17% to its highest since 2013, according to data compiled by the World Gold Council. — Reuters
