Despite the psychological significance of the milestone, retailers are witnessing a noticeable dip in consumer sentiment and volume-based sales.

After opening the week at Rs. 98,791 per 10 grams on Monday, gold climbed steadily to reach Rs. 1,00,502 by Wednesday — marking a nearly 2 percent increase within days. Including 3 percent GST, the effective market price now stands at Rs. 1,03,507 per 10 grams. This is the second time gold has hit the six-figure mark in 2025, the last being in April during heightened US-China trade tensions.

The current rally is being driven by a mix of global economic factors. Sustained buying by central banks, weakening of the US dollar, and concerns over international trade and geopolitical uncertainty have contributed to the metal’s safe-haven appeal. Additional pressure has come from local currency depreciation amid fears of secondary sanctions on Russian oil imports.

However, the price spike has forced Indian consumers to reassess their jewellery purchases. Many are now turning to lighter pieces or opting for 18, 14, or even 9 karat jewellery instead of the traditional 22 karat, in order to stay within budget. Jewellers are also reporting a sharp uptick in demand for gold coins, bars, and chains — items that are considered better investment options with lower making charges.

Silver too witnessed a sharp increase, jumping from Rs. 1,11,000 per kilogram on Tuesday to Rs. 1,15,500 per kilogram on Wednesday — a Rs. 4,500 spike in a single day.

Despite a rise in average billing amounts due to higher gold prices, the number of overall transactions has declined across several retail jewellery chains. Jewellers anticipate a 10 to 15 percent dip in volume sales if prices remain elevated through the festive months.

As the festival season approaches, industry stakeholders remain cautiously optimistic, hoping that easing international tensions or currency corrections might bring some relief to gold buyers. Until then, retailers are focusing on promoting lower-karat and lightweight collections to sustain interest among value-conscious consumers.