Gold demand during India's Akshaya Tritiya festival was muted as record prices curbed jewellery purchases, despite a modest uptick in investment demand. Indians celebrate Akshaya Tritiya, a key gold-buying festival, where 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. Gold futures in India closed at 154,609 rupees per 10 grams on Friday, nearly 63 per cent higher than at the last Akshaya Tritiya.
Demand was lower than normal across most of the country, according to Surendra Mehta, national secretary at the India Bullion and Jewellers Association. Retail buyers are shifting toward gold coins, which are easier to liquidate, even as jewellers offered discounts on crafting fees.
India's jewellery demand in 2025 fell 24 per cent from a year earlier, while investment demand rose 17 per cent to its highest since 2013, according to the World Gold Council. Buying patterns are changing, with price-sensitive buyers making purchases throughout the year whenever prices dip.
India also issued an order listing banks authorized to import gold and silver, providing relief for banks that had halted imports due to a delayed list publication.