Ahmedabad’s gold market has failed to regain momentum ahead of Dhanteras despite a fall in gold and silver prices, with traders reporting that festive buyers are avoiding large jewellery purchases and increasingly exchanging old ornaments for new ones.
The local gold and silver market is expected to record business of around Rs 150 crore during the Diwali period, according to the report by Gujarat Samachar. However, market activity is estimated to be only 50% to 60% of the level seen two years ago, as high prices and repeated price fluctuations have made customers more cautious.
Gold had earlier risen to nearly Rs 1.75 lakh per tola before declining to around Rs 1.48 lakh. The report also said that the price of 10 grams of gold, which had reached Rs 1.76 lakh at the beginning of the year, had fallen to Rs 1.48 lakh. Silver prices reportedly declined from Rs 3.86 lakh per kilogram to Rs 2.10 lakh.
The price reduction has not translated into stronger buying in Ahmedabad’s jewellery markets. Traders cited uncertainty over further price movements as one reason customers are postponing or limiting purchases. Large ornaments are being avoided, even though the wedding season has begun.
According to jewellers cited in the report, around 80% of current buyers are giving old gold in exchange for new jewellery, while only about 20% are making purchases without such an exchange. The pattern indicates that many households are using existing jewellery to meet festive or wedding-related requirements rather than committing additional money to gold.
Dhanteras traditionally brings demand for gold and silver because purchases made on the day are considered auspicious. This year, however, buyers are reportedly choosing symbolic or limited purchases. Lightweight ornaments in the 9-carat to 18-carat range are seeing higher demand, along with gold and silver items priced between Rs 15,000 and Rs 25,000.
The shift has changed the character of the festive market for both customers and retailers. Instead of driving demand for new, high-value jewellery, the season is generating smaller transactions, exchanges and purchases made primarily for auspicious observance. The Ahmedabad market’s final Diwali turnover will depend on how much business is completed during Dhanteras and the remaining festive days.