Gold Prices Deter Festive Jewellery Purchases

Gold demand during one of India's pivotal purchasing festivals, Akshaya Tritiya, remained sluggish on Sunday. High gold prices tempered enthusiasm for jewellery purchases, with investment demand showing a modest increase.

"The dramatic rise in prices has dampened jewellery demand. In terms of volume, purchasing decreased as consumers held back, while spending in value terms rose," stated Amit Modak, CEO of PN Gadgil and Sons, a Pune-based jewellery firm. Gold prices had hit a record high earlier this year, affecting consumer buying patterns.

Nationwide, except for a few southern states, gold demand was lower than usual according to the India Bullion and Jewellers Association. The trend towards investing in gold coins rather than jewellery, alongside jeweller attempts to offer discounts, marks a shift in consumer behavior.

(With inputs from agencies.)