National News
WGC India gold market update: Investment appetite upheld
Highlights
- Gold’s price momentum remains strong, breaching records, with domestic gold prices gaining 13% y-t-d
- Price rises dampen jewellery purchases but boost old gold sales; investment demand is sustained: gold ETFs see healthy inflows in February, although below January’s peak
- The Reserve Bank of India (RBI) gold holdings remains unchanged in February
- Gold imports drop to an 11-month low in February.
Looking ahead
- Expectation is growing that seasonal factors (auspicious days and festivals) and wedding related purchases could lend support to gold demand over the next couple of months. This may not, however, fully compensate for the price-driven constraints in jewellery demand.
Gold’s unprecedented momentum
Gold’s momentum has been exceptionally strong in 2025. So far this year prices have hit 13 new highs1 and have crossed the psychological threshold of US$3,000/oz.2 This performance, which has been replicated across major currencies, is driven by economic trends and sustained investment demand. Geopolitical and economic uncertainty, a weaker USD, lowering of interest rates across economies, and inflation concerns are fuelling investment demand and influencing prices.
So far in 2025,3 the LBMA gold price AM in USD has risen by US$330/oz or 12%, to US$2,999/oz, with over 4% of that increase taking place in the first half of March. The Indian domestic landed price4 has risen in tandem, gaining 17% to reach a record INR88,946/10g. The larger gains can be attributed to weakness in the INR against the USD (1.3% depreciation y-t-d). However, given the weakness in demand – particularly in jewellery – the domestic gold price remains at a discount relative to the landed price. The discount, or spread, between local and landed prices averaged US$12/oz in the first half of March, slightly narrower than the US$17/oz spread observed in February.
Gold remains India’s top performing asset, with y-t-d gains of 13%,5 in sharp contrast with the negative return from domestic equities and notably surpassing gains in fixed income assets (bonds and bank deposits). This underscores the strategic significance of gold in investor portfolios.
Gold ETFs maintain momentum
Indian gold ETFs continued their inflow in February. While lower than January’s record high, they remained healthy, driven by broadening investor interest amid global economic and market uncertainty and the positive momentum in the gold price.
According to the Association of Mutual Funds in India (AMFI), gold ETFs recorded net inflows of INR19.8bn(~US$227mn) in February,6 marking the tenth consecutive month of positive flows. Although lower than January’s peak,7 this surpassed the average net inflow figure (INR14.8bn/US$175mn) recorded over the preceding nine months. February also witnessed significant redemptions, totalling INR7.8bn/US$89.7mn – the highest since April 2024. This may be attributed to profit taking as gold prices surged.
Despite these redemptions, investor participation remained strong with 0.3mn investor accounts (or folios) added during the month, bringing the total number of gold ETF investor accounts to a record 6.8mn, reflecting a growing investor interest in this instrument. Cumulative assets under management (AUM) of gold ETFs grew to INR55.7bn(~US$6.4bn), up 7% m/m and 95% y/y. Overall holdings increased by 2.2t, taking collective holdings to 64.6t. These figures are in line with our initial estimates based on information available at the time.8 Rising investor interest has encouraged fund houses to introduce new gold ETF products, two of which were launched in February, bringing the total number of domestic gold ETFs to 20. At the end of February gold ETFs accounted for 0.9% of total AUM of mutual funds, up from 0.5% a year ago – an indication of the growing traction among investors.
RBI gold reserves stable, share of gold in forex reserves rising
The RBI held off buying gold in February, marking its second pause in three months, according to our estimates based on the bank’s weekly reporting of forex reserves. However, the bank has been increasing its gold holdings consistently since the beginning of 2024, purchasing an average of 6.3t in 12 of the last 14 months. While its gold reserves remained steady at 879t in February, the share of gold in total forex reserves rose to 11.5%,9 the highest on record and almost 4% higher than a year ago. This highlights the RBI’s continued diversification of its forex reserves.
Gold imports decline further
February gold imports fell to their lowest level since March 2024, marking the third consecutive month of decline and a steep drop from November’s highs. This trend reflects the weak demand environment amid high prices. According to Ministry of Commerce data10 the gold import bill for February totalled $2.3bn – a 14% m/m and 63% y/y decline. We estimate that import volume in February ranged between 25t and 30t.
National News
Akshaya Tritiya 2026:Indian Consumers Balanced Record-High Prices With Age-Old Traditions
Narrative Of This Season Was One Of Value Over Volume
In the grand tapestry of Indian traditions, few threads shine as brightly as Akshaya Tritiya. Known as the day of “never-diminishing” prosperity, it is a time when the spiritual and the material converge. This year, as the sun rose on April 19, 2026, the festival once again transformed bustling markets into golden corridors of hope and heritage.
Despite the headwinds of record-high prices—with 24K gold touching nearly Rs. 1,56,000 per 10 grams—the Indian consumer’s bond with the yellow metal remained unbreakable. The narrative of this season, however, was one of “Value over Volume,” as buyers navigated a complex landscape of economic prudence and unwavering faith.
A Legacy of Trust and Gratitude
For established houses, the festival was a validation of decades of service. Kishorkumar Jindatta Shah, Chairman of Chandukaka Saraf, noted the profound emotional connection underlying the commercial activity:
“Akshay Tritiya has always been a symbol of prosperity, and this year, we are truly grateful for the overwhelming response from our customers. The strong sales reflect not just festive sentiment but also the trust our patrons place in us. We sincerely thank our customers for choosing Chandukaka Saraf and being a part of our journey.”
Regional Reverence: The Southern Stronghold
Nowhere was the fervor more palpable than in South India, the ancestral heartland of the festival. Accountable for nearly 40% of national sales, the region saw a unique blend of traditional reverence and modern pragmatism.
Surabi Karthik, State Vice President of IBJA Tamil Nadu and President of the South India Bullion Association, offered a candid look at the regional performance:
“This Akshaya Tritiya, it was truly heartening to see our customers keeping their traditions alive. Gold and silver purchases flowed in on this auspicious day. However, we must be honest—the volumes, especially across Tamil Nadu, were lower than expected. There are two primary catalysts for this dip: a surge in heavy buying that had already occurred between October and February, and the restrictive Election Code of Conduct, which dampened market sentiment.”
Dr. Chetan Kumar Mehta, President of JAB-CMD at Laxmi Diamonds, Bengaluru, observed:
“This Akshaya Tritiya witnessed robust jewellery sales across South India, reflecting sustained consumer enthusiasm. With Akshaya Tritiya having its origins in South India, consumers have a strong emotional connection. While the overall volume remained largely in line with last year, the value of purchases saw a noticeable increase, driven by higher gold prices and evolving buying preferences.”
The Shift Toward “Functional Luxury”
The high-price environment of 2026 sparked a creative shift in consumer choice. The trend moved away from heavy, “locker-bound” pieces toward lightweight and versatile designs that offer daily utility.
Dr. Chetan Kumar Mehta highlighted a prominent trend:
“Demand was particularly strong for lightweight jewellery, indicating a shift towards more contemporary designs. Additionally, consumers were actively exchanging old gold for new.”
Ashish Pethe, Partner at Waman Hari Pethe Jewellers, described a balanced market:
“Strong walk-ins throughout the day, balanced traction across gold, silver, and diamond segments, and sustained strength in bullion made this Akshay Tritiya a well-rounded success.”
Resilience Amidst the “Election Environment”
The 2026 season was not without its hurdles. With the nation in the midst of an election cycle, strict regulations on cash movement and the presence of the Model Code of Conduct created a more cautious atmosphere in certain corridors.
Anantha Padmanabhan, CMD of NAC Jewellers, reflected on this unique dynamic:
“Akshaya Tritiya continues to embody prosperity and tradition. This year, we have observed a modest moderation in sales, influenced by the prevailing election environment. However, the intrinsic trust in gold as a timeless asset remains unwavering.”
Gold as Financial Prudence
Perhaps the most significant takeaway from 2026 is the evolving psychology of the Indian buyer. Gold is no longer just an ornament; it is being cemented as a cornerstone of a disciplined financial portfolio.
Dr. B. Govindan, Chairman of Bhima Jewellery, explains this transition:
“The steady demand, despite record prices, reflects a clear shift in customer thinking. Buyers are focusing more on long-term security than short-term price movements. The preference for simple jewellery and investment coins shows that gold is being viewed not just as ornamentation, but as a reliable asset that blends tradition with financial prudence.”
As the doors of the jewellery showrooms closed and the Muhurat ended, one truth remained: whether through a 2-gram gold coin or a contemporary diamond-studded pendant, the spirit of Akshaya Tritiya endured. It is a festival that celebrates not just what we buy, but the enduring legacy of prosperity we hope to leave behind.
Akshaya Tritiya 2026:Indian Consumers Balanced Record-High Prices With Age-Old Traditions
Chandukaka Saraf Expands Retail Footprint with Grand Showroom Launch in Jalna
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AKSHAY TRITIYA 2026 – Healthy Footfalls, Jewellery Sales Across India, Estimated 18–20 Tonnes Of Business Recorded
Akshaya Tritiya 2026:Indian Consumers Balanced Record-High Prices With Age-Old Traditions
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National News14 hours agoAKSHAY TRITIYA 2026 – Healthy Footfalls, Jewellery Sales Across India, Estimated 18–20 Tonnes Of Business Recorded
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National News10 hours agoAkshaya Tritiya 2026:Indian Consumers Balanced Record-High Prices With Age-Old Traditions
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