Priyanka Tiwari
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Suspense crime, Digital Desk : India's vibrant gold market is currently experiencing a noticeable slowdown in demand. The traditional fervor for purchasing the yellow metal has been dampened primarily by two key factors: the conclusion of the peak wedding season and the persistently high, even record-breaking, price of gold.
The wedding season in India is a significant driver of gold sales, as gifting and wearing gold jewellery is deeply embedded in cultural traditions. With this period now largely over, the associated surge in buying has naturally subsided.
Compounding this seasonal dip is the sharp increase in gold prices. Consumers are displaying caution, and many potential buyers are holding back, finding current price levels prohibitive for significant purchases. This price sensitivity is a well-known characteristic of the Indian gold market, where even slight fluctuations can impact buying decisions. Jewellers and dealers are reportedly observing lower footfall and are finding it challenging to move inventory despite the metal's intrinsic appeal.
Interestingly, this trend isn't isolated to India. The report also indicates that gold's allure has somewhat diminished in China, another major global consumer. Similar to India, high prices in China are also deterring buyers, leading to a decrease in the overall shine of the precious metal in these key Asian markets.
Market participants suggest that for demand to pick up substantially in India, either a notable correction in gold prices is needed, or buyers will likely wait for the next significant festive or wedding season, hoping for more favorable market conditions. For now, the combination of seasonal shifts and steep prices has led to a more subdued environment for gold sales in the country.
