Gold demand stays muted on Akshaya Tritiya as record prices curb buying
Gold demand this Akshaya Tritiya has turned out to be muted, with record‑high prices significantly curbing jewellery purchases even though the festival remains auspicious for buying gold.
Why demand stayed muted
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Domestic gold prices are near or above ₹1.5 lakh per 10 grams, up sharply from last year, making even small pieces of jewellery relatively expensive for households.
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As a result, many buyers either reduced or postponed physical jewellery orders, leading to tepid footfalls and lower transaction volumes at key jewellery hubs.
Shift in buying pattern
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Consumers are shifting from heavy traditional jewellery to lighter designs, gold coins, and small bars, where they see more value for the metal content rather than making‑charges.
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Overall value of transactions (in rupees) may still be high or even higher than earlier years, but this is driven by price inflation rather than a surge in volume of buyers.
Broader trend and outlook
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This Akshaya Tritiya reinforces a secular trend: Indians are becoming more price‑sensitive and “strategic” in buying gold, purchasing in smaller, more frequent tranches instead of only around big festivals.
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Analysts still see strong underlying demand over the medium term, but pronounced price spikes around festivals like Akshaya Tritiya are starting to temper immediate retail enthusiasm.
