Gold Prices Crossing History
New Delhi ,April 24, 2025 :Gold prices have surged past $2,500 per ounce (₹1000,000 per 10 grams), setting new global and domestic records just as India enters one of its peak gold-buying seasons — Akshaya Tritiya and the summer wedding rush. The timing has sparked mixed reactions across the market, with experts warning of both economic ripples and shifting consumer behavior.
In India, where gold is not just an investment but a deep-rooted cultural tradition, especially during festivals and weddings, the price surge is particularly significant.
Weddings and Akshaya Tritiya: Gold Demand Meets Record Prices
“This year’s Akshaya Tritiya, traditionally seen as an auspicious day to buy gold, is testing Indian sentiments like never before,” said Ritesh Menon, Chief Investment Strategist at Byte LS. “Families are feeling the emotional pull to buy, but the price tag is making many reconsider how much they’re willing to spend.”
The wedding season — which usually drives a massive spike in gold purchases — is now facing a dilemma. Some jewelers are reporting a dip in volume, even as the overall value of sales holds due to higher prices.
“In cities like Mumbai, Chennai, and Delhi, pre-bookings have declined by nearly 20% compared to last year,” shared Priya D, Senior Economist at Byte LS. “People aren’t abandoning gold, but they’re downsizing purchases — opting for lighter designs or even shifting part of their investment to digital gold.”
Economic Implications for India
India is the world’s second-largest consumer of gold, with most of its supply imported. A price spike directly impacts the country’s trade deficit and current account balance.
“The more India pays for gold, the more it affects our import bill,” Priya added. “This can pressure the rupee and complicate inflation management, especially with oil prices also climbing.”
On the flip side, India’s central bank has been quietly increasing its own gold reserves — a trend echoing global central banks' strategies to hedge against dollar volatility and geopolitical risks.
A Shift in Sentiment
Despite the price hike, Indian investors continue to view gold as a long-term hedge against inflation and market uncertainty. The rising popularity of gold ETFs and sovereign gold bonds indicates a maturing market, where traditional buyers are blending sentiment with strategy.
“Emotion and economics are colliding right now,” Menon said. “Akshaya Tritiya will be a test — not of whether Indians buy gold, but how.”
Agency Inputs
