The gold market in India is undergoing a period of unprecedented volatility, with prices reaching all-time highs and reshaping consumer behavior, especially in Goa. According to Pramit Raikar, President of the Goa Gold Dealers Association (GGDA), the price of gold hit a record-breaking level on February 7, 2025, as global economic uncertainties continue to fuel investor demand.
“Gold prices breached the ₹85,000 per 10 grams mark for the first time, gaining nearly ₹1,200 per gram in just one day,” Raikar shared. Globally, gold reached an all-time high of $2,855 per ounce, making it an even more attractive asset to investors.
Several factors are driving this surge, with trade war tensions between the U.S. and China, a weak U.S. dollar, and rising inflation risks being the key contributors. “The uncertainty around Federal Reserve rates and central bank buying is also driving this rally,” Raikar explained.
However, this surge is proving challenging for the local jewelry market. “We are experiencing 20% lower sales compared to last year,” Raikar reported. As gold prices soar, jewelry becomes less affordable, and consumers are opting to delay purchases in hopes of more stable prices.
Despite these challenges, consumers are adapting by recycling old jewelry and opting for lightweight pieces or jewelry with lower purity, such as 20kt and 18kt, which remain more affordable while maintaining value. Raikar noted a growing trend towards minimalistic designs that require less material and remain accessible even amidst rising prices.
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