Festive gold purchases in India likely to fall amid soaring prices: Report
The festive period in India is traditionally associated with increased gold buying, but the current price environment is altering this pattern. With gold prices reaching unprecedented highs, consumers are expected to reconsider their jewellery purchases.
- Sep 26, 2025,
- Updated Sep 26, 2025 7:26 PM IST
India is set to experience a decline in gold demand during the upcoming festive season, as record prices deter consumers from making traditional purchases. The surge in gold prices is prompting market watchers to anticipate subdued activity, with the industry bracing for a shift away from the typical festive buying seen in previous years, Bloomberg reported on Friday. The impact of rising costs is influencing both retailers and consumers, marking a departure from established seasonal trends.
The festive period in India is traditionally associated with increased gold buying, but the current price environment is altering this pattern. With gold prices reaching unprecedented highs, consumers are expected to reconsider their jewellery purchases. This shift is expected to be felt across the sector, as industry participants respond to a changed purchasing climate and reassess their sales expectations for the season.
Market observers note that the projected decline in demand could have wider implications for jewellers and related businesses. The industry is watching closely as the record gold prices challenge the resilience of consumer sentiment. The prevailing conditions suggest that buyers may opt to limit their gold acquisitions, affecting overall market volume during the festive period.
Retailers are preparing for a season where gold sales may fall short of prior years. The increase in gold prices is leading to cautious consumer behaviour, as shoppers weigh the cost of purchases against traditional practices. This adjustment in buying habits underscores the influence of macroeconomic factors on the Indian gold market during the festive season.
The ongoing situation highlights the importance of price sensitivity in the market, particularly during periods of cultural significance when gold demand usually peaks. The industry is monitoring the sales trajectory, anticipating that the record prices will remain a determining factor in consumer decisions throughout the festive period.
As the festive season progresses, the focus remains on how buyers and sellers adapt to the new price landscape. The expectation is that gold demand will remain below typical levels as long as prices hold at historic highs, reinforcing the connection between commodity prices and traditional consumption patterns in India.
Industry sources continue to observe the evolving scenario, noting that the festive gold demand is closely tied to price fluctuations. The record price levels are providing a critical test for the market, with all eyes on the eventual outcomes for retailers and consumers alike.
The current festive season is being shaped by the unprecedented surge in gold prices, setting a new benchmark for industry and consumer expectations. The focus on record prices and their direct effect on demand encapsulate the challenges facing India's gold market in 2025.
India is set to experience a decline in gold demand during the upcoming festive season, as record prices deter consumers from making traditional purchases. The surge in gold prices is prompting market watchers to anticipate subdued activity, with the industry bracing for a shift away from the typical festive buying seen in previous years, Bloomberg reported on Friday. The impact of rising costs is influencing both retailers and consumers, marking a departure from established seasonal trends.
The festive period in India is traditionally associated with increased gold buying, but the current price environment is altering this pattern. With gold prices reaching unprecedented highs, consumers are expected to reconsider their jewellery purchases. This shift is expected to be felt across the sector, as industry participants respond to a changed purchasing climate and reassess their sales expectations for the season.
Market observers note that the projected decline in demand could have wider implications for jewellers and related businesses. The industry is watching closely as the record gold prices challenge the resilience of consumer sentiment. The prevailing conditions suggest that buyers may opt to limit their gold acquisitions, affecting overall market volume during the festive period.
Retailers are preparing for a season where gold sales may fall short of prior years. The increase in gold prices is leading to cautious consumer behaviour, as shoppers weigh the cost of purchases against traditional practices. This adjustment in buying habits underscores the influence of macroeconomic factors on the Indian gold market during the festive season.
The ongoing situation highlights the importance of price sensitivity in the market, particularly during periods of cultural significance when gold demand usually peaks. The industry is monitoring the sales trajectory, anticipating that the record prices will remain a determining factor in consumer decisions throughout the festive period.
As the festive season progresses, the focus remains on how buyers and sellers adapt to the new price landscape. The expectation is that gold demand will remain below typical levels as long as prices hold at historic highs, reinforcing the connection between commodity prices and traditional consumption patterns in India.
Industry sources continue to observe the evolving scenario, noting that the festive gold demand is closely tied to price fluctuations. The record price levels are providing a critical test for the market, with all eyes on the eventual outcomes for retailers and consumers alike.
The current festive season is being shaped by the unprecedented surge in gold prices, setting a new benchmark for industry and consumer expectations. The focus on record prices and their direct effect on demand encapsulate the challenges facing India's gold market in 2025.