Gold buying picks up after price correction, but shoppers prioritise affordability

Gold prices have fallen nearly 4% in a month to around Rs 1.47 lakh per 10 grams from Rs 1.53 lakh, prompting selective buying ahead of the festive and wedding season. Consumers are increasingly opting for lightweight and studded jewellery, lower-carat designs and old-gold exchanges to manage costs while balancing affordability and style.

Gold prices have fallen nearly 4% in a month to about Rs 1.47 lakh per 10 grams from Rs 1.53 lakh, prompting selective buying ahead of the peak festive and wedding season as consumers look to make the most of the decline while remaining cautious about overall purchase costs.

Lightweight designs, studded pieces and old-gold exchanges are gaining traction, according to industry executives.

"The recent correction has encouraged some buying interest in India, although consumers remain price conscious," said Darshan Desai, CEO of Aspect Bullion & Refinery.

He said volatility is expected to persist, with the US economic data, Federal Reserve commentary and currency movements influencing prices, even as festive buying provides some support to the domestic bullion market.

Jewellery demand remains resilient across price segments. CaratLane managing director Saumen Bhaumik said that consumers are more deliberate with their spending but remain interested in both value-conscious and premium jewellery. The extended festive and wedding calendar, along with sustained appetite for diamonds and everyday jewellery, is keeping market sentiment positive, according to him.

Mangesh Chauhan, managing director, Sky Gold & Diamonds, which manufactures jewellery for leading brands such as Tanishq and Malabar Gold & Diamonds, said festive and wedding demand were expected to remain healthy, supported by strong business-to-business orders from wholesalers and continued store expansion by jewellery retailers.

"While prices are elevated, their relative stability in recent months has given consumers greater confidence to plan their purchases," he said.

However, buyers are increasingly seeking affordability without compromising on design. There is a growing preference for lightweight, lower-carat and design-led jewellery, while old-gold exchanges are allowing consumers to acquire new designs within their budgets, said Chauhan. Studded jewellery is also gaining popularity among younger buyers, prompting manufacturers to expand their offerings in this category.

Supriya Kataria, founder of Kumari Fine Jewellery, said that rising prices were making consumers more selective rather than deterring them from purchasing jewellery altogether. Buyers are showing greater interest in lightweight pieces, lower-carat options and versatile designs that balance aesthetics with affordability.

Consumers are also comparing gold prices, making charges, promotional offers and exchange values more closely, with brand trust playing an important role in purchase decisions, she said.

The shift is likely to be more pronounced in discretionary purchases, while weddings, festivals and family milestones continue to underpin demand. Old-gold exchanges are emerging as an important means of managing purchase costs, allowing households to use the value of existing jewellery toward new purchases.

With the festive and wedding calendar extending over the coming weeks, industry executives expect demand to hold up, though purchase decisions may take longer as consumers balance emotional spending with budget constraints. The emphasis is increasingly on getting more design and value for every rupee spent, rather than simply buying more gold.