Gold price correction brings buyers back to jewellery stores, but demand shifts to lightweight pieces

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A correction in gold prices has brought buyers back to jewellery stores, with leading jewellery chains reporting an improvement in footfalls and sales. However, consumers remain cautious about spending, increasingly opting for lightweight and lower-carat jewellery to keep purchases within their budgets.

Gold prices have risen sharply over the past year despite the recent correction. According to indicative bullion market figures, 24-carat gold was priced at around Rs 1.20 lakh per 10 grams in November 2025, compared with Rs 1,44,129 per 10 grams on November 5, 2026, according to the India Bullion and Jewellers Association (IBJA) – an increase of approximately 20 percent over the year, although prices have retreated from their recent highs.

The correction has encouraged customers who had deferred purchases because of rising prices to return to stores, particularly ahead of the wedding season.

“The recent softening in gold and silver prices, coming just ahead of Karvachauth and Dhanteras, is a welcome development for customers who had been waiting for a more comfortable point to make their festive purchases,” said Ramesh Kalyanaraman, executive director at Kalyan Jewellers.

Kalyanaraman said the company had witnessed an improvement in footfalls and sales over the past week and remained optimistic about demand.

“For many families across the country, buying gold or silver during these festivals is an auspicious tradition and the correction gives them greater confidence to go ahead with those plans,” he said.

Titan has also seen customers return after a brief slowdown caused by fluctuations in gold prices.

Speaking during the company's September-quarter earnings call on Thursday, Arun Narayan, CEO of Titan's jewellery division, said store traffic and consumer sentiment were positive during Navratri but weakened for a few days after Vijayadashami because of gold price volatility.

He said demand had recovered over the past week as prices softened, raising expectations of a stronger end to the festive season.

At Sky Gold, store footfalls have increased 200 percent over the past week, while daily sales, including business-to-business transactions, have doubled.

Senco Gold has reported sales value growth of more than 25 percent year-on-year, accompanied by higher footfalls, according to managing director and CEO Suvankar Sen.

Joyalukkas is targeting around 20 percent growth in sales volumes over the previous year during Dhanteras, supported by festive and wedding demand.

“Despite price fluctuations, the emotional and investment value of gold continues to drive purchases,” said Joy Alukkas, chairman and managing director of Joyalukkas Group.

Buyers shift to lightweight jewellery

While the correction has helped revive purchases, jewellers say affordability remains a concern, with customers increasingly choosing lighter pieces and lower-carat gold to manage spending.

“Demand indicators are pointing to stabilisation rather than a broad-based recovery. Consumers remain price-sensitive and are increasingly shifting towards lighter-weight and lower-carat jewellery to manage affordability,” said Himank Sharma, director at Crisil Ratings.

Crisil expects jewellery sales volumes to decline 5–6 percent in FY27, reflecting the impact of elevated prices on gold consumption over the financial year.

Retailers are responding by expanding their collections of lightweight jewellery.

CaratLane is witnessing strong demand for everyday lightweight diamond jewellery, studded pieces and solitaires, according to Gurukeerthi Gurunathan, co-founder and chief product and technology officer.

“Consumers are increasingly researching and shortlisting jewellery online before visiting stores,” he added.

The company's offerings include natural diamonds set in silver, 9-karat gold jewellery for entry-level buyers and solitaire jewellery priced above Rs 5 lakh.

BlueStone has also introduced a 9-karat jewellery range to cater to consumers looking for more affordable products.

At Giva, demand remains strong for gold coins and lightweight wearable jewellery, said founder and CEO Ishendra Agarwal.

Diamond sales gain traction

The improvement in consumer sentiment is also benefiting diamond jewellery retailers, while financing schemes further help encourage purchases.

“Softening of gold is typically good for demand and we expect the season to be successful one, right up to Valentine’s Day,” said Gaurav Singh Kushwaha, founder and CEO of BlueStone.

Zen Diamond India has reported a 30 percent increase in sales, driven by stronger demand for natural diamonds, according to managing director Neil Sonawala.

“We have already witnessed a 30 percent increase in sales at Zen Diamond India as consumers showing a strong interest in natural diamonds,” Sonawala said.

The company is offering zero-cost, zero-interest and zero-down-payment EMI schemes to make purchases more affordable.

Demand for investment products is also improving. MMTC-PAMP has reported growing interest in gold coins and bars across denominations. “Buying activity is gradually improving as consumers prepare for the festive and wedding season,” said Samit Guha, managing director and CEO of MMTC-PAMP.