Gold Prices Weigh on India's Festive Season Demand
India's festive season for gold jewellery purchases is upon us, but this year's demand may be influenced by higher prices. Gold prices are currently elevated compared to last year, prompting a question about whether festive sentiment can revive demand or if high prices will continue to weigh on volumes.
Cultural and religious traditions anchor gold purchases during this period, but higher prices change how much people buy, what they choose, and how they pay for it. One pattern is a shift in quantity purchased, families may choose to spend the same budget but accept a smaller weight or scale down the size of the purchase.
Jewellers are offering lightweight designs that use less gold while retaining appearance, making it possible for shoppers to participate in festive buying at a lower outlay. The exchange of old jewellery is also gaining attention, many consumers choose to exchange older or unused jewellery for new designs, paying only the difference.