Gold prices fall, but big jewellers hold off buying in hope of further decline

The gold market is in an unusual state these days. The importance of gold in India is well known, and demand rises sharply during festivals and the wedding season. This time, however, the picture looks different. Customers are treading carefully while buying, and jewellers themselves are cautious.

Gold prices are falling, yet large bullion traders remain wary of buying. Traders expect prices to come down further. Because of this expectation, several big jewellery companies have refrained from buying gold in large quantities, raising questions about market demand in the festive season.

According to Sameet Guha, head of MMTC-PAMP, a precious metals refining company, the big jewellery companies have not yet entered the market fully to buy. Small and medium bullion traders, by contrast, have taken a quite different approach. They appear more active in the market, and some have even placed repeat orders.

The direction of prices plays a major role in the jewellery business. When gold prices begin to rise, companies build up stock in advance to avoid costlier purchases later. But if they see room for a further fall, they can use the stock they have already accumulated and push new purchases back.

Gold prices touched a record high in January 2026, after which international prices declined. A report dated October 28, 2026 said gold prices in the international market had fallen by about 24% since the war between the US and Iran began. Last week the price went below $4,000 an ounce, its lowest level since July. Despite this change, big bullion traders are waiting for the market's next move rather than rushing to build stock.

In India, October to December is considered an important period for gold buying. Dhanteras, Diwali and weddings push up demand in these months. This time, however, price swings and the fear of a further fall are weighing on buying decisions. According to MMTC-PAMP, the company's gold sales are below last year's level.

September sales were nearly the same as last year, while October showed a slight increase. On the whole, despite the fall in prices, big bullion traders are being cautious for now. If prices begin rising again, buying may pick up. But if prices fall further, traders may prefer to wait for some time. The coming weeks will therefore be crucial in determining the direction of gold demand and the jewellery business.