Gold demand gains traction as market enters key festive & wedding season
Benchmarks Nifty22,698.85-50.91FEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.23 % Invest NowFEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.47 % Invest NowEnter search…
Bar and coin demand, meanwhile, has reportedly moderated as price momentum has eased, tempering some of the investment-related buying seen during the earlier price rally.
Kolkata: Seasonal gold demand is gaining traction as the market enters the key festive and wedding period with the recent decline in gold prices has provided some support to demand, according to a World Gold Council report. Manufacturers are reporting healthy order flows as retailers replenish inventories to meet this seasonal demand, while industry feedback points to improving in-store footfall.Alongside increased marketing and promotional activity, jewellers have focused on fresh designs and lighter weight pieces, which offer greater wearability.
Also read | India jewellers hold off gold buying, betting prices will drop
Old-gold exchange remains an important feature of the market, with jewellers offering additional incentives to encourage consumers to trade existing holdings for new purchases; this also contributes to domestic gold supply.
Bar and coin demand, meanwhile, has reportedly moderated as price momentum has eased, tempering some of the investment-related buying seen during the earlier price rally.
Live Events
WGC said that listed jewellery retailers reported strong double-digit revenue growth in the range of 20-30% y/y in the July-September quarter, suggestive of resilient consumer demand despite elevated and volatile gold prices during the quarter and a less favourable festive calendar. The performance was particularly noteworthy as key festivals that supported sales in the same period last year shifted to the October-December quarter this year.
Growth was driven by a combination of strong same-store performance and continued network expansion. Retailers maintained an active pace of expansion, with the largest players adding 42 stores during the quarter. Same-store sales growth of around 20% suggests that growth was not only driven by the opening of new retail outlets but also by healthy demand across existing stores. Retailers are also focusing on tighter inventory control to help manage working capital pressure caused by the elevated gold price.
Also read | India's gold import route changing course for a benefit all jewellers want
Demand during the quarter benefitted from wedding-related buying, festive purchases, growing consumer preference for lightweight jewellery, brand-led promotional activity and strong growth in e-commerce channels. The growth profile indicates that value growth continued to outpace volume growth. Buyer growth remained in the mid-single digits, while average ticket sizes increased by double digits, reflecting the combined impact of higher gold prices and ongoing premiumisation. Old-gold exchange transactions remained an important source of demand, rising by more than 10% y/y and accounting for over 50% of sales for some retailers.
In contrast, investment-led coin demand reportedly moderated from a strong base.
Management commentary is positive for the coming two quarters, supported by festive demand and the peak wedding season. Sales are expected to benefit from new store openings as well as marketing and promotional campaigns.
Indian gold ETFs saw stronger net inflows in September, broadly in line with the global trend. According to data from the Association of Mutual Funds in India (AMFI), net inflows rose to Rs 44.5bn (US$466.2mn), the highest in seven months. Nearly 3 tonnes was added to holdings during the month, taking cumulative holding to 124 tonnes. The pickup in inflows suggest that investors viewed the September price decline as an opportunity to add gold as a strategic asset and portfolio diversifier. Inflows continued into October, with an estimated INR17.22bn (US$ 181mn) of net inflows during the first half of the month, equivalent to around 1.2t.
Despite the higher inflows, cumulative assets under management (AUM) declined by 2.5% m/m to INR1,863bn (US$19.5bn), largely reflecting the 7% fall in domestic gold prices during the month. Gold ETFs accounted for 2.25% of overall mutual fund AUM, marginally below 2.27% in January’26.
Investor participation also picked up. Gold ETFs added 140,231 new folios (accounts) during September, a marked increase from around 4,000 in August, taking the total number of folios to 12.68mn. This increase suggests that the price pullback encouraged broader investor participation, highlighting continued interest in gold as a long-term portfolio allocation.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onGold demandWorld Gold Councilfestive season gold salesindia gold salesgold pricesindia gold pricesWGCworld gold council India data
(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)
...moreless(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onGold demandWorld Gold Councilfestive season gold salesindia gold salesgold pricesindia gold pricesWGCworld gold council India data
(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)
...morelessContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET
Unlock Access to All Exclusives with ETPrime FREE TRIAL
15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers
Trial offer expiring in00 : 05 : 00
I'd rather pay ₹2599 nowUh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Prime Account Detected!
It seems like you're already an ETPrime member with
Login using your ET Prime credentials to enjoy all member benefits
Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.
Unlock ETPrime's Exclusive Stories Today!
Big Price Drop! Flat 40% Off
Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In nowOffer Exclusively For You
Save up to Rs. 700/-
ON ET PRIME MEMBERSHIP
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get Flat 40% Off
Then ₹ 1749 for 1 year
Avail OfferOffer Exclusively For You
ET Prime at ₹ 49 for 1 month
Then ₹ 1749 for 1 year
Avail OfferSpecial Offer
Get flat 40% off on ETPrime
Avail OfferAvail OfferClaim NowAlready a Member? Sign In nowNeed Assistance?
Connect with an ETPrime expert for personalized support and guidance
+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '' + h3 + '
' + h4 + '
- ' + listing + '
What’s Included with
ETPrime Membership
1Exclusive Insights That Matter
Uncover the truth with our investigative stories
Make strategic moves using the real-world case studies
Read industry-specific stories to identify emerging trends
Spot opportunities with in-depth insights that matter
Trump temper on H-1B visas is forcing Indians to do these things to stay put in US
What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.
Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?
The problem with lab grown diamonds
Why a falling rupee is a better option for the economy
A list of top 20 momentum stocks that have delivered massive returns in one year
2Invest Wisely With Smart Market Tools & Investment Ideas
Alpha Trade
Get daily trade ideas from SEBI-registered research analysts.
Investment Ideas
Grow your wealth with stock ideas & sectoral trends.
Stock Reports Plus
All-in-one stock research with Stock Score, peer comparison & key signals.
BigBull Portfolio
Get to know where the market bulls are investing to identify the right stocks.
Stock Analyzer
Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.
Market Mood
Analyze the market sentiments & identify the trend reversal for strategic decisions.
Stock Talk Live at 9 AM Daily
Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.
3Stay informed anytime, anywhere with ET ePaper
ePaper - Print View
Read the PDF version of ET newspaper. Download & access it offline anytime.
ePaper - Digital View
Read your daily newspaper in Digital View & get it delivered to your inbox everyday.
Wealth Edition
Manage your money efficiently with this weekly money management guide.
TOI ePaper
Read the PDF version of TOI newspaper. Download & access it offline anytime.
Deep Explainers
Explore the In-depth explanation of complex topics for everyday life decisions.
Health+ Stories
Get fitter with daily health insights committed to your well-being.
Personal Finance+ Stories
Manage your wealth better with in-depth insights & updates on finance.
5Enjoy Complimentary Subscriptions From Top Brands
Stream new documentaries from all across the world every day.
Stories you might be interested in
Figures reflect the source report and its stated period. This article is for information and is not investment advice.
