Jewellery market to witness 'mixed trend' on Akshaya Tritiya, expect business of Rs 16,000 crore: CAIT

New Delhi: The domestic jewellery market is likely to witness a "mixed trend" in gold and silver buying on the auspicious day of Akshaya Tritiya amid sharp rise in prices of precious metal, Confederation of All India Traders (CAIT) said on Tuesday.

All India Jewellers and Goldsmith Federation President Pankaj Arora has projected a business of Rs 16,000 crore on Akshaya Tritiya, celebrated on April 30.

"This year, jewellery markets across the country are witnessing mixed trends ahead of Akshaya Tritiya, mainly due to the sharp rise in gold prices in recent weeks," CAIT said in a statement.

Currently, gold prices have touched Rs 1 lakh per 10 grams, compared to Rs 73,500 on the day of Akshaya Tritiya last year. Similarly, silver prices have touched Rs 1,00,000 per kilogram, up from Rs 86,000 per kilogram in 2023.

All India Jewellers and Goldsmith Federation President Pankaj Arora said, "Typically, Akshaya Tritiya sees a surge in purchases, but this year, elevated prices have affected consumer demand." On this year's Akshaya Tritiya, sales are expected to reach around 12 tonnes of gold worth nearly Rs 12,000 crore and about 400 tonnes of silver worth Rs 4,000 crore, making a total estimated business of Rs 16,000 crore, he said.

A slight slowdown in customer buying sentiment is expected due to the high prices of gold and silver, he added.

Global economic uncertainty, rising crude oil prices, weakening of the Indian rupee against the dollar, and increased investor interest in gold as a safe-haven asset have driven up the prices of gold and silver. Additionally, geopolitical tensions and fluctuations in interest rates have also contributed to the price surge.

CAIT’s National President, B C Bhartia said the ongoing wedding season in India has prevented a complete drop in jewellery demand.

Jewellers have also introduced attractive offers to draw in customers.

Trade leaders have urged customers to purchase only BIS hallmarked and certified jewellery and to always insist on a proper bill. They also advised buyers to transact only with trusted jewellers to ensure pricing transparency.