A sharp rise in global gold prices has created challenges for jewelry buyers during India’s wedding season and prompted discounts in China to stimulate sales. The price of benchmark gold surged to an unprecedented $2,942.70 an ounce, driven by concerns over a potential global trade war and new U.S. tariff proposals.
In India, the second-largest consumer of gold globally, the soaring prices have significantly impacted wedding jewelry purchases, a crucial aspect of wedding traditions. B Muthuvenkatram, a jeweler from Coimbatore, shared that many customers are delaying their gold purchases, hoping for a price drop. Surendra Mehta from the India Bullion and Jewellers Association revealed that demand for jewelry has plummeted by 70-80% nationwide. Domestic gold prices in India reached an all-time high of 86,360 Indian rupees (approximately $993.81) per 10 grams, reflecting an increase of over 10% in 2025, following a 21% rise in 2024.
To mitigate the slowdown in sales, Indian jewelers are offering discounts of $30 to $38 per ounce. In China, the world’s largest gold consumer, dealers are also offering discounts between $7 and $10 per ounce to counteract sluggish sales. Post-Chinese New Year, the demand for physical gold in both China and Hong Kong has dropped significantly.
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