# Indian Gold Buyers Shift to Lighter Jewellery Amid High Prices Deepavali shoppers are opting for smaller gold purchases as market prices remain elevated. - **Source:** [CNA – Asia](https://www.channelnewsasia.com/asia) - **Published:** 2026-11-06 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/a7edf490-0a7c-47f8-90df-d5404e26c326 ## Deepavali Gold Buying Trends As India celebrates Deepavali, consumers are maintaining traditional gold buying habits despite significant price pressures. Shoppers like Manisha Shinde are prioritizing smaller purchases, such as gold coins, to mark the festival of lights. This cultural practice remains a symbol of prosperity and long-term investment for many households across the country. ## Market Price Dynamics Global gold prices have retreated from a January peak of nearly US$5,600 per ounce. Despite this decline, the metal currently trades at approximately US$4,000 per ounce, keeping costs high for domestic buyers. The depreciation of the Indian rupee further exacerbates these expenses, making gold acquisition more costly for local consumers. ## Strategic Consumer Adjustments Jewellers report that customers are increasingly choosing lighter jewellery pieces to manage their budgets. Many buyers are also opting to exchange their existing gold holdings for new ornaments rather than purchasing entirely new inventory. This shift allows consumers to participate in festive traditions while navigating the current high-price environment effectively. ## Government Import Policy Impact In May, the Indian government increased the import duty on gold from 6 per cent to 15 per cent. This policy aimed to curb imports and reduce foreign exchange outflows. Consequently, physical gold prices in India rose by approximately 4 to 6 per cent, further influencing the purchasing power of local consumers. ## Macroeconomic Pressures on Demand Elevated crude oil prices, driven by the United States-Iran conflict, are placing additional strain on India's national import bill. Prime Minister Narendra Modi has repeatedly encouraged citizens to limit gold purchases and prioritize domestic goods to conserve foreign exchange. These broader economic factors are significantly shaping the current national retail landscape. ## Quarterly Sales Performance Data indicates that jewellery demand fell 20 per cent by weight to under 100 tonnes during the July-to-September quarter. However, due to higher market prices, total spending on gold jewellery actually increased by 16 per cent. This reached a valuation of 1.49 trillion rupees, equivalent to roughly US$16 billion in total. ## Industry Outlook and Optimism The World Gold Council anticipates India's overall gold demand will hit a six-year low in 2026. Despite this, regional CEO Sachin Jain remains optimistic about the festive season. He notes that consumers are showing buoyancy, viewing the recent price dips as a viable opportunity to enter the market for long-term investment. ## Future Market Expectations Looking ahead, the final quarter of 2026 is expected to see support from wedding and festive season demand. While high prices will likely continue to limit the total weight of jewellery purchased, the market remains resilient. Analysts are monitoring how these price levels will influence consumer behavior throughout the remainder of the year. ## Sources covering this story - https://www.channelnewsasia.com/asia/india-deepavali-gold-prices-jewellery-6527506 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._