GJC Expects Festive Demand to Support Jewellery Market Despite Bullion Price Volatility
Mumbai, June 30 (TNT): The All India Gem and Jewellery Domestic Council (GJC) on Tuesday said the Indian gold and silver market witnessed unprecedented price volatility during the first half of 2026, with bullion touching record highs before undergoing sharp corrections, significantly influencing consumer demand and industry sentiment.
In its half-yearly market review, the Council said gold prices touched a record ₹1,70,480 per 10 grams in January before correcting to around ₹1,42,800 per 10 grams by late June.
Silver also surged to an all-time high of ₹4,02,490 per kilogram before easing to about ₹2,25,940 per kilogram during the same period, the Council said in a release here.
According to the Council, the sharp rise in bullion prices boosted investment demand as consumers sought safe-haven assets, but higher prices dampened jewellery purchases due to affordability concerns.
It noted that buyers were increasingly opting for lightweight jewellery designs to balance budgets with changing fashion preferences.
GJC said domestic market conditions were further influenced by the increase in customs duty announced in May, higher taxation and compliance costs, and continued uncertainty over the Goods and Services Tax (GST) regime. The Council reiterated its demand for reforms to the Gold Monetisation Scheme, saying such changes could mobilise idle household gold, reduce import dependence and strengthen domestic supply chains.
It also pointed to global factors such as geopolitical tensions in the Middle East, the depreciation of the Indian rupee against the US dollar, inflationary pressures and continued gold purchases by central banks as key drivers of bullion price movements during the first half of the year.
Rajesh Rokde, Chairman of GJC, said the correction in bullion prices during late June represented a normal market adjustment following extraordinary highs rather than a collapse.
He said profit-booking, a stronger US dollar and expectations of prolonged high global interest rates had contributed to the correction, while retail prices remained relatively firm.
Rokde expressed confidence that the upcoming festive season and peak wedding calendar in the second half of the year would support jewellery demand, particularly for lightweight products.
Avinash Gupta , Vice Chairman of GJC, said affordability remained a major concern for consumers and stressed the need for balanced government policies on customs duty and taxation to discourage unofficial trade channels.
He said reforms to the Gold Monetisation Scheme could provide a long-term solution by reducing import dependence and strengthening India’s economic resilience, while consumers continued to regard gold as a safe-haven investment despite price volatility.
Looking ahead, GJC said bullion prices are likely to remain volatile during the second half of 2026, although recent corrections could lead to a period of consolidation.
It expects jewellery demand to remain moderate initially but anticipates stronger sales during the festive and wedding seasons, especially in lightweight jewellery categories.
The Council added that clarity on reforms to the Gold Monetisation Scheme, possible tax changes and developments in the global geopolitical situation would remain key factors influencing the market in the coming months.
TNT KS
