Gold Slumps 24 Percent from Peak as Top Jewelers Hold Back on Festive Buying Despite a sharp 24 percent decline in gold prices from record highs, major Indian jewelry houses are delaying bulk purchases due to high import duties and expectations of further drops. The traditional festive window around Dhanteras and Diwali usually brings an unmistakable surge in Indian bullion markets, but trading floors are displaying an uncharacteristic lull this season. Beyond everyday retail customers hesitating to step into showrooms, the country's most prominent jewelry houses are actively avoiding large inventory purchases. Even after gold prices experienced a steep 24 percent correction across both domestic and international markets, wholesale buyers continue to avoid building substantial stockpiles. In regular market cycles, a notable drop in precious metals triggers heavy accumulation by major retail chains, yet industry leaders are currently adopting a patient wait-and-watch stance. This cautious positioning has ignited widespread speculation among buyers regarding whether bullion is poised to drop even lower in the near future. Steep Correction Below the 4,000 Dollar Threshold Price action earlier in the year saw international gold rally beyond a historic peak of 5,400 dollars per ounce in January. Since hitting that record ceiling, the metal has been trapped in a prolonged downturn, wiping away roughly 24 percent of its valuation. Downward momentum accelerated sharply over the past week, dragging bullion beneath the critical psychological barrier of 4,000 dollars per ounce. The prolonged silence and restraint shown by heavyweight bullion houses in the face of such a dramatic collapse have left retail shoppers and market observers questioning the timing of their next move. The Logic Keeping Major Jewelers on the Sidelines Explaining this broad institutional hesitation, Samit Guha, Chief Executive Officer and Managing Director of leading bullion refiner MMTC-PAMP India, noted that large domestic jewelry firms are deliberately avoiding aggressive buying. Established bullion market behavior dictates that during a sustained rally, jewelers rush to build inventory to guard against future price hikes. Conversely, when prices enter a defined and sustained downtrend, institutional buyers generally operate under the assumption that the market has not yet established a definitive bottom. Prominent jewelers suspect that prices may slide further, prompting them to hold off until they can secure metal at the lowest possible levels. At present, activity remains restricted to small and mid-sized jewelers purchasing only bare minimum quantities to meet immediate operational requirements. Import Tariffs and Macroeconomic Considerations Beyond technical market patterns, domestic policy interventions have played an equally significant role in depressing commercial demand. The central government raised the import duty on gold to 15 percent in May, an adjustment that sharply inflated the landing cost of bullion within the domestic market. Because India imports virtually its entire domestic gold consumption from abroad, high bullion shipments weigh heavily on the country's trade deficit. Aiming to stabilize this external balance, Prime Minister Narendra Modi has routinely called on citizens to curb discretionary purchases and limit non-essential gold imports. With the customs tariff standing at 15 percent, tying up vast financial reserves in physical inventory has become an excessively expensive proposition for organized jewelry chains. Muted Festive Demand and Shrinking Inflows The October to December quarter stands as the single most critical commercial window for the domestic jewelry sector, historically driven by the concurrent arrival of Dhanteras, Diwali, and the extensive wedding season. Nevertheless, the visible reluctance among organized market leaders threatens to drag down overall quarterly consumption numbers. Projections released by Citi Research indicate that total gold imports into India across the October to December period could plunge to just 106 metric tons. Assessing current institutional movement, Samit Guha pointed out that overall sales volumes at MMTC-PAMP have moderated compared to the identical timeframe last year, even though retail buying picked up slight momentum during the first half of October. Industry specialists maintain that the moment international markets deliver credible signs of price stabilization, or initiate an upward reversal from the floor, large jewelry corporations will likely return with substantial procurement orders. What this means for you A 24 percent slump from peak prices combined with institutional caution directly influences household budgets and consumer gold strategies. • Retail Purchase Timing: Buyers preparing for upcoming weddings can consider staggering their purchases rather than locking in large orders immediately. Because wholesale dealers anticipate further price softening, waiting for price stabilization may yield better value. • Effective Domestic Pricing: The 15 percent import tariff implemented in May keeps local retail landing costs elevated despite global drops. Consumers will notice that local jewelry prices have not dropped as steeply as raw international dollar rates. • Promotional Offers: Retail showrooms facing sluggish footfall during the festive quarter are likely to compete aggressively for direct sales. Shoppers can leverage this environment to negotiate lower making charges and festive discounts during Dhanteras and Diwali. • Investment Strategy: Retail investors allocating funds toward physical bullion or coins should avoid deploying capital in a single lump sum. Waiting for clear reversal cues while using incremental buying approaches offers better protection against continued downward volatility. Why this happened The hesitation among leading jewelers despite a severe price correction stems from expectations of further market drops, domestic customs tariffs, and official policies curbing import volumes. • Search for Market Bottom: International gold has fallen by 24 percent from its January peak above 5,400 dollars to slip beneath 4,000 dollars per ounce. Institutional bullion buyers follow a strict playbook of delaying accumulation during extended drops until a definitive price floor emerges. • Higher Import Tariff: The central government raised the import duty on gold to 15 percent in May. This tariff significantly increases the domestic landing cost, making extensive inventory financing far too costly for organized retailers. • Trade Deficit Constraints: Because domestic demand relies almost entirely on foreign imports, massive bullion inflows expand India's trade deficit. Continued policy tightening alongside public appeals by Prime Minister Narendra Modi to curb non-essential purchases has actively discouraged excessive buying. • Shrinking Import Inflows: Forecasts from Citi Research indicate that gold imports during the peak October to December festive quarter could drop to 106 metric tons. Muted wholesale sales reported by refiners like MMTC-PAMP have reinforced the decision to delay substantial replenishment. Questions & Answers 1. How much has gold fallen from its record high set in January? Gold has fallen by approximately 24 percent from its January high above 5,400 dollars per ounce, recently sliding below the 4,000 dollar mark. 2. Why are major jewelers hesitating to buy despite lower rates? Leading jewelers anticipate that prices could drop further and are waiting for the market to establish a definitive bottom before committing to large volumes. 3. When did the government raise the import duty on gold and by how much? The government raised the import duty on gold to 15 percent in May, significantly increasing the domestic landing cost of the metal. 4. What is the projected gold import volume for the October to December quarter? According to estimates from Citi Research, total gold imports into India during the October to December quarter could drop to just 106 metric tons. 5. What has MMTC-PAMP noted regarding consumer retail demand? MMTC-PAMP Managing Director Samit Guha stated that overall sales softened year on year, though retail demand saw a mild uptick in the first half of October. https://trendkia.com/en/business/rikorda-unchai-se-24-phisadi-phisala-gold-janie-kyon-tyohari-sijana-men-bare-kharidara-bana-rahe-duri-53658 TrendKia — Har trend, sabse pehle.