Expecting further declines in gold prices, major Indian jewellers are holding back on purchases. Traders are now closely monitoring prices amid weak demand, import duties, and market volatility.
Gold Rate: Now goldsmiths are not buying gold; jewellers, along with customers, are confused.
Gold demand typically surges during festivals and weddings in India, but this time, despite falling prices, major jewellers are cautious about purchasing. Traders expect gold prices to fall further. This possibility has led many major jewellery companies to refrain from purchasing large quantities of gold. This also raises questions about market demand during the festive season.
According to Sameet Guha, head of precious metals refining company MMTC-PAMP, large jewellery companies have not yet fully returned to the market to buy. In contrast, small and medium-sized jewellers appear to be more active. Some traders have even placed repeat orders.
The direction of prices is crucial in the jewellery business. When gold prices rise, companies may stockpile to avoid costly purchases in the future. However, if they anticipate further declines, they may defer new purchases, using existing stock.
Gold prices fell below record highs
Gold prices reached record levels in January 2026. This was followed by a period of decline in the international market. According to a report on October 28, 2026, gold prices had fallen by approximately 24 percent since the start of the war between the US and Iran. Last week, the price fell below $4,000 per ounce, its lowest level since July. Despite this price change, major jewellers are waiting for the market to move rather than hastily increase their stockpiles.
Market eyes on prices ahead of festivals
The period from October to December is considered a significant time for gold purchases in India. Dhanteras, Diwali, and weddings increase demand during this period. However, this time, price fluctuations and the fear of further declines are impacting purchasing decisions.
According to MMTC-PAMP, the company's gold sales are running below last year's levels. Sales in September were almost the same as last year, while October saw a slight increase.
Overall, despite the decline in gold prices , major jewelers are currently exercising caution. If prices begin to rise again, buying could pick up. However, if prices fall further, traders may prefer to wait longer. Therefore, the coming weeks will be crucial in determining gold demand and the direction of the jewelry business.
Import duty and weak demand also impact
Gold demand in India is being influenced by both domestic and international factors. According to the report, the increase in import duty on gold to 15% in May 2026 has impacted purchases. India imports most of its gold needs from abroad, so import duties also affect the cost in the domestic market.
Additionally, weak demand in rural areas and tightening import regulations could also put pressure on business. In such a scenario, jewelers are planning their purchases based on their needs and expected prices.
