India’s gold demand is set to cross Rs 20,000 crore, up from Rs 16,000 crore, on Akshaya Tritiya 2026, despite fluctuating rates of the precious metals due to the ongoing Iran-US war, said the Confederation of All India Traders (CAIT).
“Akshaya Tritiya has traditionally been one of India’s most auspicious occasions for purchasing gold. While gold continues to dominate, the nature of purchasing is evolving significantly in response to steep price escalation,” said Praveen Khandelwal, Member of Parliament from Chandni Chowk and Secretary General of CAIT.
Gold prices have surged past Rs 1.58 lakh this year, up from last year’s Rs 100,000 per 10 grams, while silver has jumped from Rs 85,000 per kg to an unprecedented Rs 1.25 lakh per kg. However, the CAIT says that while prices have remained on the higher side, consumer demand has also adjusted, and buyers are approaching the market more cautiously amid the fluctuating prices due to geopolitical tensions in West Asia.
“There is a clear shift towards lightweight, wearable jewellery, alongside a stronger focus on silver and diamond products. Attractive incentives such as reduced making charges and complimentary gold coins are also helping sustain consumer interest,” said CAIT National President B.C. Bhartia.
ParakhJariwala, National President of the All India Jewellers and Goldsmith Federation (AIJGF), said average sales could come down significantly to just 25 to 50 grams per jeweller — “clearly indicating a sharp decline in volume”.
A similar trend is expected in the silver trade, where traders could witness mixed sales of the white metal with an average of 400 to 800 grams per jeweller during the festival.
“These figures underline a critical shift: while the value of business is expanding due to rising prices, actual consumption is contracting,” Khandelwal said.
That explains the rising popularity of lightweight jewellery and small-denomination coins this year.
Besides the Iran factor, defence and energy stocks, along with a strong dollar and high-yielding US treasury bonds, are also weighing down the demand for gold and silver in the international market.
Experts’ opinions over gold and silver are divided, with one segment believing the precious metal is bound to see a crash in the near future, while the other side believes that the prices are expected to stay anywhere between $4,000 and $4,500 in the international market.
Follow us
