Despite a recent dip in gold prices ahead of the wedding season, demand for the precious metal remains subdued in Kashmir, reflecting weak consumer sentiment and financial stress among households.
With the marriage season set to begin next month, traders had expected a revival in buying activity following the price correction. However, markets across the Valley are witnessing thin footfall, defying typical seasonal trends.
Bashir Ahmad, president of the All Kashmir Gold Dealers and Workers Association, said demand remains low. “Instead of the typical 8-gram coins, people now prefer buying 1-gram biscuits,” he said, pointing to shrinking purchasing power and cautious spending by consumers.
The ongoing tensions and conflict in West Asia have unsettled global markets, leading to fluctuations and a correction in gold prices. Traditionally, such conditions tend to boost gold buying, particularly during wedding periods when the metal is both an investment and a cultural necessity.
But traders say the expected surge has failed to materialise this time.
“The wedding season, which is usually a lifeline for the gold trade, is failing to generate momentum,” said Qazi Tauseef, spokesperson of the Kashmir Economic Alliance (KEA).
He said that the anticipated increase in demand following the price drop has not been seen on the ground. “Historically, periods of global uncertainty and price fluctuations push consumers towards gold as a safe investment, especially during weddings. But this time, the response from buyers is largely absent,” he added.
Market participants attribute the subdued demand to a combination of economic strain, high living costs and cautious household spending. Many families, they say, are scaling back on wedding expenses or postponing purchases amid financial uncertainty.
“Even customers who used to buy full jewellery sets are now opting for lighter pieces or delaying purchases altogether,” said a Srinagar-based jeweller.
“People are prioritising essential expenses over discretionary spending”, he added.