Indian Gold Jewellery Demand Softens Amid Price Volatility

Gold jewellery demand has softened in India due to sharp price swings in August. The World Gold Council (WGC) reported that consumers are delaying discretionary purchases until prices stabilise.

According to WGC Research Head, India, Kavita Chako, the recent gold price rally followed by a pullback left many consumers in a wait-and-watch mode. Retailers have been cautious about inventory building and prefer to replenish based on realised demand.

Wedding-related demand remains relatively resilient, with some anecdotal reports pointing to a shift towards lighter-weight jewellery. Large retailers are stepping up product launches and marketing initiatives, while refining their strategies to favour faster-moving products.