Gold Demand Unshaken by Price Increase During Akshaya Tritiya

The festive occasion of Akshaya Tritiya saw a high demand for gold and golden jewellery across India, despite a notable increase in gold prices. Retailers reported strong footfall, particularly in the southern region where the festival holds significant importance. Saiyam Mehra, chairman of the All India Gem And Jewellery Domestic Council, highlighted the robust customer turnout nationwide and pointed out an expected slight dip in business volume due to the price hike.

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Gold prices soared to over Rs 71,000 per 10 grams on Friday, marking a 15-17 per cent rise from around Rs 60,000 in April of the previous year. Despite this surge, consumer interest remained undeterred with a particular inclination towards heavy wedding jewellery in the south and lighter items in other regions. Mehra also noted the emergence of new buyers eager to invest in gold before any further price increases.

According to World Gold Council Regional CEO Sachin Jain, the jewellery sector witnessed modest growth from January to March, with April remaining relatively quiet. However, strong customer confidence has been observed with significant pre-bookings for high-value items despite the elevated prices. Jain anticipates a rise in demand for more affordable pieces as Akshaya Tritiya celebrations continue.

Saurabh Gadgil, Chairman and Managing Director of PNG Jewellers, and Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers India, both echoed the sentiment of sustained demand amidst rising gold prices. They highlighted a positive trend in consumer purchasing behavior, especially concerning wedding-related acquisitions during Akshaya Tritiya and the current quarter.

This year's Akshaya Tritiya has demonstrated the enduring allure of gold among Indian consumers, even as they navigate through price fluctuations. The festival not only underscores gold's cultural significance but also its perceived value as a lucrative investment amidst economic uncertainties.