After a steady rise over the past two years, gold prices have started easing since February, even amid uncertainty stemming from the ongoing West Asia conflict and rising geopolitical tensions.
Gold prices have declined 18 per cent from their all‑time high of ₹1.80 lakh per 10 grams recorded in January to ₹1.52 lakh per 10 grams on Wednesday. Prices are expected to remain range‑bound, with depreciation of the rupee against the US dollar acting as a key influence.
At current levels, 18‑carat gold, priced at around ₹1.16 lakh per 10 grams, is nearly 24 per cent cheaper than 22‑carat ornament gold, while 14‑carat gold is about 40 per cent cheaper at ₹90,940 per 10 grams.
Consumer confidence in the yellow metal remains firm, with gold prices having risen 59 per cent from ₹94,611 per 10 grams recorded during last year’s Akshaya Tritiya.
Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council, said the sharp rise in prices is prompting many consumers to explore more affordable options such as 18K, 14K and 9K jewellery, enabling them to uphold tradition while managing budgets.
“We expect demand for these lower carat categories to be higher this Akshaya Tritiya, along with lighter designs, despite the price surge,” he said.
Investors, meanwhile, are adopting a cautious approach, opting for lower‑carat gold purchases amid uncertainty over future price movement, particularly once the situation in West Asia stabilises.
Dr Saurabh Gadgil, Chairman and Managing Director of PNG Jewellers, said that despite elevated prices, consumer interest remains resilient and overall demand is expected to grow 25–30 per cent compared to last year.
“We have rolled out special festive campaigns across key markets including Goa, Uttar Pradesh, Madhya Pradesh and Maharashtra, offering customer‑centric benefits on old gold exchange and making charges,” he added.
Dr Renisha Chainani, Head of Research at Augmont, said 18‑carat gold, offering 75 per cent purity at meaningfully lower price points, is emerging as a practical and aspirational middle ground, especially among younger, design‑conscious consumers.
Nitesh Jain, Co‑founder of Ethera, a BlueStone‑backed lab‑grown jewellery brand, said consumers are increasingly seeking designs that are versatile, wearable and more accessible at current gold prices.
“For a 20‑gram jewellery piece, 18‑carat jewellery can cost around 18 per cent less, depending on prevailing gold rates, making it an appealing choice for value‑conscious consumers,” he said.
Beyond jewellery, gold investments through exchange‑traded funds (ETFs) are also gaining traction and may serve as an additional option ahead of Akshaya Tritiya.
Tapan Patel, Fund Manager – Commodities at Tata Asset Management, said gold ETFs in India have delivered returns of about 59 per cent from last year’s Akshaya Tritiya to date, helping protect investor value during this period.
“We have already seen an increase in gold ETF inflows in April, reflecting strong traction ahead of Akshaya Tritiya, as the recent price correction is attracting both investment demand and auspicious‑day buying,” he said.