Gold prices hit record high, denting wedding season sentiment

Gold prices surged by Rs 1,400 per 10 gm to touch a new high of Rs 94,489 on Wednesday in the domestic market, dampening consumer sentiment during the ongoing wedding season. If this upward trajectory continues, it could hurt sales on Akshaya Tritiya, which falls on April 30, industry executives said.

Gold prices in 2025 have been on a steep rise, with spot market prices at retail jewellery stores hitting record levels of Rs 95,000 per 10 gm (excluding GST) and Rs 98,000 per 10 gm (including GST). This surge has triggered negative sentiment across India, particularly during the key wedding-buying season, said Renisha Chainani, Head of Research at Augmont Gold.

She added, “Reports indicate that sales have dropped as much as 30–40%, as consumers are postponing purchases and opting to exchange old jewellery rather than buy new. With rising geopolitical tensions, strong central bank buying, and the possibility of economic instability, investors may consider increasing their gold allocation to 10–15% of their portfolio, up from the traditional 5%. This can serve as a hedge against market uncertainty and inflation, and support overall diversification—particularly through physical bars, coins, or gold-backed financial products like Digital Gold and Gold ETFs.”

Commenting on the day’s rally in the yellow metal, Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said, “Gold showed a solid rally once again amid renewed tariff panic, as market participants seized the opportunity to go long during the escalating trade tussle. MCX Gold hit landmark levels of Rs 95,000, while Comex Gold surpassed $3,300, reflecting strong safe-haven demand.”

The rally has largely been driven by geopolitical uncertainty and the absence of any constructive progress in tariff negotiations between the US and China. Unless there is a concrete update indicating de-escalation, gold prices are likely to remain elevated.

“However, the momentum could fizzle out if both economic giants signal a return to trade talks or ease tensions. For now, gold is expected to trade in a range of Rs 94,000 to Rs 95,500 on the MCX, with eyes firmly on global developments,” Trivedi added.