Record gold prices weigh on India festival jewelry demand

Record gold prices have damped consumer jewelry buying during India’s Akshaya Tritiya festival, Reuters reported, with shoppers deterred by elevated XAUUSD levels even as investment demand (coins/bars/ETFs) showed resilience. Akshaya Tritiya — India’s second-biggest gold-buying occasion after Dhanteras — saw subdued retail purchases, a near-term negative for jewelers and local demand, while persistent investor interest and ETF flows (e.g., GLD) continue to support prices. The dynamic highlights diverging drivers: weaker discretionary retail jewelry demand versus continued safe-haven/investment demand, leaving near-term market direction sensitive to further price moves and Indian consumer reaction to sustained highs.