Gold prices in India have surged past ₹1 lakh per 10 grams, raising concerns among jewellers just ahead of Raksha Bandhan and Diwali. While the price rise is supported by global trends, it may dampen festive season jewellery sales.

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Gold Crosses ₹1 Lakh Mark Amid Global Push Shift in Consumer Preferences Quick Analysis / What This Means

Gold Crosses ₹1 Lakh Mark Amid Global Push

Gold prices in India have hit a record high of ₹1,00,000 per 10 grams, largely driven by strong global demand, particularly central bank buying, and ongoing US trade uncertainties.

Jewellers across the country are reporting muted consumer response as the psychological ₹1 lakh barrier may be discouraging bulk jewellery purchases. With major festivals like Raksha Bandhan and Diwali approaching, the industry is worried about the impact on demand during what is typically a strong buying season.

Silver prices have also jumped, further pressuring consumers planning purchases.

Shift in Consumer Preferences

Due to the price surge, customers are shifting towards lighter jewellery designs or opting for lower-karat gold options.

However, investment-driven demand remains stable. Gold coins and bars are still witnessing steady buying from investors looking to hedge against inflation and market volatility.

Retail jewellers say that while footfalls are consistent, purchase volumes have declined. Many customers are delaying purchases in anticipation of a possible price correction.

Quick Analysis / What This Means

The ₹1 lakh gold price milestone may dampen festive demand, especially among middle-class buyers. Jewellers might have to focus more on lightweight collections and investment products to balance out the volume drop. The trend also indicates strong global confidence in gold as a long-term asset.

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ByPradeep Sangatramani

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Pradeep Sangatramani, founder and CEO of NiftyTrader, is an IIM Calcutta alumnus with a background in engineering. Passionate about the stock market from early on, he spent years studying its dynamics and working in roles focused on market analysis, trading tools, and financial data. Realising the challenges traders face in accessing user-friendly tools, he built NiftyTrader to offer data-driven, easy-to-use solutions. Committed to transparency and education, Pradeep actively shares insights through articles and webinars, aiming to empower traders at all levels.