New Delhi, India Analysts and jewelers attributed the low demand for gold to its high pricing on this Akshaya Tritiya, an auspicious day in the Hindu calendar that is said to be suitable for purchasing the precious metal. According to publicly accessible statistics, global gold prices increased by more than 20% in 2025, marking an unparalleled rate of increase. They have increased by almost 40% in the last 12 months.

Analysts claim that because of an unanticipated increase in pricing during Akshaya Tritiya, customers are avoiding investing in or buying gold jewelry. Every year on this auspicious day, many people schedule the acquisition of precious metals like gold and silver.

Due to its attraction as a safe haven amid continuing trade concerns, gold prices are at their highest points ever, both in India and globally. International gold prices, which have been trending north for a while, have been jolted by the uncertainty surrounding Trump’s reciprocal tariffs proposal and counter-tariffs.

India’s demand for gold in the first quarter of 2025 was 118.1 tonnes, a 15% decrease from 139 tonnes during the same time previous year, according to the World Gold Council.

Commodity research expert Manoj Kumar Jain of Prithvi Finmart stated: “This Akshaya Tritiya, the gold purchase has been poor, maybe because of high pricing. The demand is still about 25% less than it was the year before. The majority of customers are still unable to afford gold. Additionally, rather of making new purchases, consumers are increasingly trading in their old gold for new.

Similar to this, Hareesh V, Head of Commodities at Geojit Investments Ltd., said that due to the recent, unheard-of increase in gold prices, more and more consumers are choosing digital coins and gold exchange-traded funds (ETFs).

Due to Akshaya Tritiya on Wednesday, gold prices have fallen on the market and in physical shops. Gold futures were selling at Rs 94,380 per 10 grams on the MCX and between Rs 95,000 and Rs 96,000 per 10 grams in physical shops.

“For the year ahead, it is advisable to buy gold only for ceremonial purposes and not with an investment motive, as returns are expected to moderate around 6-7 per cent, in line with inflation,” said Ajay Kedia, chairman of the Mumbai-based consultancy business Kedia consultancy.

According to Colin Shah, MD of Kama Jewelry, “With gold prices often hitting new highs lately, we are hopeful that consumers will consider this time as the most appropriate time to buy jewellery of their choice as gold prices are expected to see more upswing in the near future.”

According to the Confederation of All India Traders (CAIT), sales of gold jewelry and other goods during Akshaya Tritiya totaled almost Rs 12,000 crore nationwide.