Bhubaneswar: India’s gold market has witnessed a significant shift, with domestic gold demand reportedly falling by more than 70%, according to the India Bullion and Jewellers Association. The slowdown is being attributed to a combination of policy changes, declining prices, and changing consumer behaviour.
One notable trend is that many Indian households are selling old gold jewellery instead of purchasing new ornaments, as falling prices have encouraged people to monetise existing gold holdings rather than make fresh investments. Industry estimates indicate that old gold jewellery sales during the April–June quarter have risen sharply compared with the same period last year.
The demand slowdown follows Prime Minister Narendra Modi‘s appeal in May urging citizens to postpone non-essential gold purchases for one year to help reduce pressure on India’s foreign exchange reserves during the West Asia crisis. The appeal was later acknowledged by the Prime Minister, who thanked citizens for responding positively.
The jewellery industry also points to the government’s increase in gold customs duty from 6% to 15% in May as another major factor affecting demand. At the same time, gold prices have corrected sharply from their earlier record highs, with MCX gold falling by more than 12% during the month and nearly 15% over the quarter, further influencing buying patterns.
The developments suggest a notable behavioural shift in one of the world’s largest gold-consuming markets, as consumers increasingly delay new purchases and recycle existing jewellery amid evolving economic conditions.
-OdishaAge
