Indian Bullion Market Sees Decline in Domestic Demand

The bullion market in India has seen a decline in domestic demand, causing gold and silver prices to retreat from recent highs. According to traders on the Zaveri Bazaar floor, high spot prices have triggered consumer resistance, resulting in unusually quiet counters during mid-session runs.

Traders noted that persistent high prices have led to a sharp drop in retail walk-ins at local jewellers. 'People are walking in, checking the board, and walking right back out,' said a bullion dealer with three decades on the street. 'At these rates, the wedding segment is buying strictly by weight reduction, cutting down 20-gram pieces to 10-gram tokens.'

The Multi Commodity Exchange (MCX) also saw gold futures hover lower due to profit-booking following global cues from international spot markets. Silver followed a similar trajectory, shedding earlier gains as industrial buyers delayed bulk procurement pending clearer signals on import duty adjustments and currency movements.