Gold jumps 60% to Rs 1.57L from Rs 98,000 a year ago; sales fall 15%, coins gain
Gold prices in India have surged 60% year-on-year, leading to a 15% decline in sales volume during the Ganesh Chaturthi festival. Consumers are shifting toward lighter jewelry and bullion coins as they adjust to the record-high costs.
Why it matters
The shift in consumer behavior reflects broader economic pressures and inflation concerns in the Indian retail market during peak festive seasons.
A huge rise in gold prices from the same time last year has led to a drop in gold sales this Ganesh Chaturthi. Gold sales have declined by around 15% year-on-year in volume terms, with consumers either reducing the quantity they bought or opting for lighter jewellery as a sharp increase in gold prices made purchases more expensive, industry executives said.In Mumbai's spot market on Monday, gold was trading at Rs 1.57 lakh per 10 grams, including 3% goods and services tax. This was around 60% higher than the Rs 98,000 per 10 grams recorded on Ganesh Chaturthi last year, which fell on August 28.Gold prices high“Domestic gold prices have remained at a historic high, which has impacted volume sales.
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