Bhubaneswar, Oct 28: Gold prices could face further pressure as Indian jewellers reportedly delay fresh purchases, hoping for a more favourable buying opportunity following the recent decline in international bullion prices. The cautious approach comes ahead of the festive season, when demand for gold jewellery typically gains momentum across the country.
According to a report citing MMTC-PAMP India, large jewellery chains have yet to return fully to the market, while buying activity has been driven mainly by small and medium-sized jewellers.
Samit Guha, chief executive officer and managing director of MMTC-PAMP, said some smaller jewellers had placed repeat orders, indicating that buying activity continues in parts of the market despite the overall cautious sentiment.
Why Are Jewellers Waiting to Buy Gold?
Jewellers’ purchasing decisions are being influenced by recent price movements and expectations that bullion could become cheaper.
When gold prices fluctuate sharply, retailers may postpone replenishing their inventories to avoid buying at elevated levels. If prices subsequently decline, jewellers may be able to purchase gold at lower rates. However, a further fall is not guaranteed, and any rebound in international prices could change buying strategies.
The hesitation among major jewellery chains suggests that some retailers are waiting for greater clarity on price trends before committing to substantial purchases.
Global Gold Prices Under Pressure
International gold prices have experienced a significant correction after reaching record levels earlier in the year. The decline has prompted market participants to reassess their buying strategies amid changing economic and geopolitical conditions.
Gold prices in India are influenced by several factors, including international bullion rates, the rupee-dollar exchange rate, import duties and domestic demand. Consequently, a fall in global prices does not always translate into an equivalent reduction in local retail rates.
Investors and jewellery buyers will also be watching movements in the US dollar, interest-rate expectations and geopolitical developments, all of which can influence gold’s appeal as a safe-haven asset.
Higher Import Duty Adds to Demand Concerns
India’s gold market is also sensitive to government policies because the country imports most of the gold it consumes.
The report attributes some of the weakness in demand to a reported increase in import duty earlier this year. Higher import costs can raise domestic prices and affect purchasing decisions among both jewellers and consumers.
Prime Minister Narendra Modi has also urged Indians to moderate gold purchases as part of efforts to address the country’s widening trade deficit.
The combined impact of import costs, price volatility and cautious retail buying could influence jewellery demand during the festive season.
Gold Rate in Bhubaneswar Today
Gold buyers in Odisha are closely watching retail prices as the festive shopping period approaches.
According to the rates provided in the source report, the indicative gold prices in Bhubaneswar on October 28 are:
Gold purity
Price per gram
24-carat gold
₹14,395
22-carat gold
₹13,195
18-carat gold
₹10,796
Note: These rates are reproduced from the supplied report and have not been independently verified. Buyers should check the latest rates with local jewellers before making a purchase.
The final price of jewellery may be higher because of making charges, applicable GST and other shop-specific charges. Prices may also vary between jewellers and according to the type of jewellery purchased.
Will Gold Become Cheaper Before Diwali?
The possibility of further price declines could encourage some buyers to wait before making major purchases. However, the market outlook remains uncertain, and there is no guarantee that gold prices will continue to fall.
For consumers planning festive purchases, tracking daily rates and comparing prices across established jewellers may help them make more informed decisions.
For the jewellery industry, the key question is whether the recent price correction will encourage renewed buying or whether customers and retailers will continue to wait for further declines.
With festive demand, global bullion movements and domestic import costs all influencing the market, gold prices are likely to remain an important focus for Indian buyers in the coming days.
Disclaimer: Gold prices are subject to market fluctuations. The rates mentioned above should be verified locally and are provided for informational purposes only.