Gold Prices Soar But Festive Demand Remains Steady

Higher gold prices are unlikely to impact demand during the upcoming festive and wedding season in India. According to Kaushlendra Sinha, CEO of Indian Association for Gold Excellence and Standards, higher gold prices have not weakened jewellery demand previously.

In fact, tier-2 and tier-3 cities are gaining traction as organised retailers expand into smaller markets. This expansion is driving growth in the industry.

Gold prices hit a three-month high on Monday, rising 1.2% to cross ₹4.45 lakh/31 grams. Despite this increase, demand for gold remains strong, especially during festivals and weddings when people traditionally buy gold as a gift or investment.