Gold Jewellery Demand Softens Amid Price Volatility

Gold jewellery demand has softened in recent weeks after a strong run-up ahead of the festive season, according to the World Gold Council. The sharp price swings have prompted consumers to defer discretionary purchases and wait for greater price stability.

The WGC Research Head, India, Kavita Chako stated that 'the strength in gold jewellery demand seen in the run-up to the festive season has softened over recent weeks.' She attributed this to the sharp gold price rally in August followed by a subsequent pullback, which left many consumers in a wait-and-watch mode.

Despite the moderation, the trade remains cautiously optimistic about demand during the peak festive and wedding season. Large retailers have seen stronger demand and stepped up product launches, marketing initiatives, and promotional campaigns to favour faster-moving products.