Gold Demand Muted in India During Akshaya Tritiya Festival Amid High Prices

Gold demand in India during the Akshaya Tritiya festival on Sunday was muted as high prices reduced jewellery purchases, though investment demand saw a slight increase, Reuters reported. Indians observe Akshaya Tritiya as the second-largest gold-buying festival after Dhanteras, considering purchases of precious metals auspicious on this day.

prices reached a record high of $5,594.82 per ounce on January 29 and were trading just over $4,800 per ounce recently. In India, gold futures closed at 154,609 rupees ($1,670) per 10 grams on Friday, up nearly 63% from the previous Akshaya Tritiya.

"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, a jeweler based in Pune.

Demand was lower than normal across most of the country, except in a few southern states, stated Surendra Mehta, national secretary at the India Bullion and Jewellers Association.

buyers have shifted toward gold coins, which are easier to liquidate, while jewellers offered discounts on crafting fees to attract customers, a Mumbai-based jeweler reported. India's jewellery demand in 2025 fell 24% from the previous year, offset by a 17% rise in investment demand, the highest since 2013, according to World Gold Council data.

Gold-buying patterns in India are evolving, with purchases occurring throughout the year when prices dip, rather than concentrating during festivals, a Mumbai-based bullion dealer with a private bank said.

issued an order on Friday listing banks authorized to import gold and silver, addressing delays that had halted imports for some banks.