Gujarat Gold Buyers Keep Purchases Small Despite Price Correction

Gold prices in Gujarat have cooled down from their January record highs, but buyers are still holding back on making large purchases. According to jewellers, customers are returning to stores, but most are exchanging old ornaments rather than buying fresh gold.

The price correction and easing of geopolitical tensions in West Asia have helped revive store visits after several slow months. Footfalls have increased by 10-20% over the past few weeks, but sales have not recovered at the same pace.

Buyers are opting for lightweight jewellery weighing 20-25g instead of heavy bridal sets, with demand growing for 9-, 14- and 18-carat jewellery to keep costs under control while still choosing contemporary designs.

Exchanges continue to dominate sales, accounting for 80-85% of purchases, while fresh purchases account for only 15-20%. Repairs and remodelling are also keeping jewellers busy as customers melt or redesign old pieces instead of spending on new gold.