Good days ahead for gold jewellery market as gold prices decrease by 7 per cent

Gold prices have decreased by 7% from a peak of Rs. 1 lakh (US$ 1,169.07) per 10 grams on April 22, as US-China trade tensions eased and geopolitical situations improved. Jewellers are reporting a gradual increase in footfalls, with demand rising for more affordable 18-carat plain gold jewellery for weddings, a segment traditionally dominated by 22-carat gold.

After Akshaya Tritiya, the gold market remained dull as prices remained steep. However, consumers have returned to the market over the last week as gold prices have dropped. People mostly buy for marriages in June, with some even placing orders for the wedding months of November and December, fearing that prices may shoot up if the President of the United States, Mr. Donald Trump, imposes a reciprocal tariff after the 90-day window.

According to jewelers ‘ reports, footfalls are also increasing in tier-II and tier-III cities. With gold prices rising almost 24% since the start of 2025, there is a growing demand for more affordable 18-carat plain gold jewellery for weddings. The lower caratage is no longer limited to studded jewellery alone. Jewellers are looking at lower caratage to reduce price points, with some customers now comfortable with 14-carat gold. 

The India Bullion & Jewellers Association (IBJA) has requested the Bureau of Indian Standards (BIS) to introduce hallmarking unique identification (HUID) numbers for 9-carat gold jewellery. Kalyan Jewellers has started offering 18-carat gold jewellery in certain markets, although some regions, like Tamil Nadu, still prefer 22-carat gold.