India’s gold-buying festival sees tepid demand on price surge

BusinessInternationalIndia's gold-buying festival sees tepid demand on price surgeBy Reuters -Apr 19, 2026Gold demand during one of India’s key buying festivals stayed muted on Sunday as record prices curbed jewellery purchases, ​offsetting a modest uptick in investment demand. Indians celebrated Akshaya Tritiya, the ‌second-biggest gold-buying festival after Dhanteras, when purchasing precious metals is considered auspicious. “The sharp rally in prices curbed jewellery demand. In volume terms, buying was lower as consumers ​held back, though in value terms spending was higher due to ​elevated prices,” said Amit Modak, chief executive of PN Gadgil ⁠and Sons, a Pune-based jeweller. Gold prices hit a record high of $5,594.82 ​per ounce on January 29 and are now trading at around $4,861. Gold futures in ​India, the world’s second-biggest gold consumer, closed at 154,609 rupees ($1,670) per 10 grams on Friday, nearly 63% higher than at the last Akshaya Tritiya festival. Except in a few ​southern Indian states, demand was lower than normal across the rest ​of the country, said Surendra Mehta, national secretary at the India Bullion and Jewellers Association. Retail ‌buyers ⁠have been shifting toward gold coins, which are easier to liquidate, even as jewellers offered discounts on fees for crafting jewellery to attract buyers, said a Mumbai-based jeweller. India’s jewellery demand in 2025 fell 24% from a year ​earlier, while investment ​demand rose 17% ⁠to its highest since 2013, according to data compiled by the World Gold Council. Gold-buying patterns in India are ​changing, with purchases no longer concentrated only during festivals ​as price-sensitive ⁠buyers make purchases throughout the year whenever prices dip, said a Mumbai-based bullion dealer with a private bank. India issued an order on Friday listing banks ⁠authorised to ​import gold and silver, providing relief for ​banks that were forced to halt imports because the list’s publication was delayed. ($1 =...