Gold prices have eased from their January peak, but remain high enough to constrain purchases. Jewellers in India are hoping the festive season will provide a boost to demand.
A staff member shows gold bangles at a jewellery store in Ahmedabad on May 12, 2026. (Photo: AFP/Shammi Mehra)
A staff member shows gold bangles at a jewellery store in Ahmedabad on May 12, 2026. (Photo: AFP/Shammi Mehra)
MUMBAI: For Manisha Shinde, Deepavali would not be complete without buying gold.
She is spending about US$700 on a gold coin ahead of the festival of lights, which falls on Sunday (Nov 8).
“It’s Deepavali, and I’m buying this as a gift for my daughter-in-law. This is so she can use the gold later to make ornaments,” she told CNA.
Gold is traditionally bought during festivals and weddings in India, where it is regarded as a symbol of prosperity and a long-term investment.
Global gold prices have eased from a record high of nearly US$5,600 an ounce in January, offering some relief to buyers. But the precious metal remains expensive, currently trading at around US$4,000 an ounce.
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Manisha Shinde (centre) shops for gold jewellery ahead of Deepavali at a store in Mumbai, India. (Image: CNA)
BUYERS OPT FOR LIGHTER JEWELLERY
Jewellers say high prices are prompting customers to choose lighter pieces or exchange old gold for new jewellery.
Manisha Shinde (centre) shops for gold jewellery ahead of Deepavali at a store in Mumbai, India. (Image: CNA)
BUYERS OPT FOR LIGHTER JEWELLERY
“It's not that people are not buying jewellery, but obviously what they have done is that they have reduced their purchases in terms of grams,” said Aditya Modak, chief operating officer of jewellery retailer PN Gadgil & Sons.
The depreciation of the Indian rupee is also making gold more expensive for domestic buyers.
In May, the government raised import duty on gold from 6 per cent to 15 per cent to curb imports and reduce the outflow of foreign exchange.