India’s Deepavali gold buyers opt for lighter jewellery, exchange old pieces amid high prices

Indian buyers are still purchasing gold for Deepavali, but high prices are leading many to choose lighter jewellery or exchange old pieces. The trend matters because gold is both a traditional festive gift and a major investment, while weaker jewellery demand is weighing on India’s overall gold market.

Gold has fallen from nearly US$5,600 an ounce in January to around US$4,000, yet a weaker rupee and a rise in import duty from 6 to 15 per cent have kept domestic prices high. Jewellery demand by weight fell 20 per cent year on year to just under 100 tonnes in July to September, although spending rose 16 per cent to 1.49 trillion rupees (US$16 billion). The World Gold Council expects demand to reach a six-year low in 2026, but anticipates festive and wedding purchases may support the final quarter.