A recent drop in gold prices has led to more customers visiting jewellery stores across India. This comes as consumers get ready for upcoming festivals. Leading jewellery chains report a rise in demand, especially for lightweight and lower-carat pieces. Buyers are still careful about their spending. According to the India Bullion and Jewellers Association (IBJA), 24-carat gold was priced at ₹1,44,129 per 10 grams on November 5, 2026. This is down from around ₹1.20 lakh per 10 grams in November 2025. Despite the recent price drop, this marks a rise of about 20% year-on-year.
Consumer Sentiment
Ramesh Kalyanaraman, executive director at Kalyan Jewellers, noted that the recent fall in gold and silver prices is well-timed. This drop coincides with festivals like Karvachauth and Dhanteras. He stated, "The correction gives them greater confidence to go ahead with those plans." Titan, another major player in the jewellery market, has also seen a rise in customer interest after a brief slowdown. This slowdown was due to gold price changes. Arun Narayan, CEO of Titan's jewellery division, mentioned that store traffic and consumer sentiment improved after a dip following Vijayadashami.
Market Dynamics
Despite the positive consumer response, analysts warn against buying gold indiscriminately. Hitesh Jain, executive vice president at Yes Securities, said that gold's traditional role as a safe-haven asset is fading. He linked the recent price drop to rising real yields. Jain noted a shift in safe-haven preferences toward yielding assets like US Treasuries and stable currencies such as the Swiss franc and Japanese yen. He predicts that gold may enter a long consolidation phase over the next three to five years. This could lead to gold underperforming other asset classes.
The recent drop in gold prices may boost demand for gold jewellery, especially with festivals approaching. However, the overall outlook for gold remains cautious. This caution is due to changing investor preferences toward assets that offer yield. Keep an eye on upcoming sales figures from major jewellery retailers. They will report on how the festive season impacts sales.
Based on reporting by: moneycontrol.com