Gold's Golden Grip: Impact on Indian Jewellery

• Gold price rise hit Indian jewelry sales.
• Jewelry demand fell 24% in 2025.
• High costs reduced consumer spending.

Gold prices are a key factor in India's economic landscape, especially in the jewellery sector. Let's delve into the recent trends and their repercussions on the Indian jewellery market. This article will unpack the factors behind the reduced demand and explore the broader effects.

Price Surge Impact

The World Gold Council's data indicates a significant downturn in the Indian jewellery market. The rise in gold prices has made jewellery less affordable, leading to decreased consumer spending. This financial strain resulted in a reduction of 24% in the volume of jewellery sales in 2025. The high cost dissuaded many potential buyers, impacting market dynamics.

Demand's Downward Slide

The increase in gold's value directly influenced the demand for jewellery. When prices climb, discretionary spending is often the first to feel the pinch. In 2025, consumers appeared to have made the difficult decision to reduce their jewellery purchases. The 24% decrease in sales volume is a direct result of these economic pressures. The situation reflects a shift in consumer behaviour.