Jewellery demand up as gold falls 7% from peak of Rs. 1 lakh (US$ 1,169.07) per 10 grams

Gold prices have decreased by 7% from a peak of Rs. 1 lakh (US$ 1,169.07) per 10 grams on April 22, as US-China trade tensions eased and geopolitical situations improved. Jewellers are reporting a gradual increase in footfalls, with demand rising for more affordable 18-carat plain gold jewellery for weddings, a segment traditionally dominated by 22-carat gold. In the international market, gold prices fell more than 4% last week, the steepest weekly loss since November 2024, to touch Rs. 2,72,011 (US$ 3,180) per troy ounce on May 16, after the US and China agreed to lower tariffs for 90 days. The yellow metal had hit a record high of Rs. 2,99,384 (US$ 3,500) per ounce on April 22. Meanwhile, India-Pakistan tensions eased, and Ukrainian and Russian officials held their first direct meeting since March 2022. After Akshaya Tritiya, the gold market remained dull as prices remained steep. However, consumers have returned to the market over the last week as gold prices have dropped. People mostly buy for marriages in June, with some even placing orders for the wedding months of November and December, fearing that prices may shoot up if the President of the United States, Mr. Donald Trump, imposes a reciprocal tariff after the 90-day window.
According to jewelers ' reports, footfalls are also increasing in tier-II and tier-III cities. With gold prices rising almost 24% since the start of 2025, there is a growing demand for more affordable 18-carat plain gold jewellery for weddings. The lower caratage is no longer limited to studded jewellery alone. Jewellers are looking at lower caratage to reduce price points, with some customers now comfortable with 14-carat gold. The India Bullion & Jewellers Association (IBJA) has requested the Bureau of Indian Standards (BIS) to introduce hallmarking unique identification (HUID) numbers for 9-carat gold jewellery. Kalyan Jewellers has started offering 18-carat gold jewellery in certain markets, although some regions, like Tamil Nadu, still prefer 22-carat gold.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.