Record gold prices hit sales volume of Indian jewellery retailers

Gold prices in India have been on a steady uptrend for months, recently touching record highs driven by the US-China trade tensions, a weakening US dollar and rising investor appetite for safe-haven assets. In the second half of April, domestic gold prices breached the psychologically significant mark of INR100,000 ($1,174) per 10 grams. India is one of the biggest buyers of gold in the world.

Since December 2024, gold prices have surged by INR20,850 per 10 grams, marking a rise of over 26%. Much of the rally has come since early April, following the US administration’s announcement of fresh tariffs, which triggered renewed global market uncertainty.

The sharp spike in gold, however, is likely to weigh on volumes of gold sold. The jump in gold prices to record highs may trim the sales volume of organised gold jewellery retailers by 9-11% in the fiscal year 2026. However, with realisations likely to rise sharply compared to last year, revenues are projected to increase by 13–15%.

This follows four consecutive years of more than 20% annual revenue growth, with the industry expanding 2.5 times since fiscal 2021. However, volume growth has been subdued as consumers have purchased smaller quantities amid budget