New Delhi: The Indian gold market has seen a significant shift after Prime Minister Narendra Modi appealed to citizens to avoid gold purchases for one year. This development, widely reported as Gold Demand Drops After Modi’s Appeal, has created a major impact across the jewellery sector.
Following this statement, the market reacted strongly, and overall gold demand dropped sharply across the country.
Sharp Fall in Gold Demand
After the appeal, gold demand in India fell by nearly 70%. Jewellers reported a sudden slowdown in customer buying activity. In comparison to the previous year, demand dropped from around 25 tonnes to nearly 7.5 tonnes within a short period.
As a result, jewellery shops across major cities experienced reduced sales and lower footfall, marking a clear phase of Gold Demand Drops After Modi’s Appeal in the market.
Effect on Prices and Stock Market
Initially, gold prices fell by around ₹600 per 10 grams after the announcement. However, this trend did not last long.
Jewellery company stocks such as Titan and Kalyan Jewellers also declined by 6% to 9% due to weak market sentiment. Meanwhile, price movements remained unstable, creating uncertainty among buyers and investors during this period of Gold Demand Drops After Modi’s Appeal.
Government Policy Adds Further Change
Soon after the appeal, the government increased import duty from 6% to 15%. This move pushed gold prices upward again. Prices, which had initially dropped to around ₹1,51,972, later climbed back to approximately ₹1,58,350.
Therefore, the market witnessed mixed signals from both policy and demand changes, reinforcing the impact of Gold Demand Drops After Modi’s Appeal.
Shift in Consumer Behaviour
Due to rising uncertainty, consumers changed their buying patterns. Many people avoided new gold purchases and instead used existing jewellery.
Additionally, a growing number of buyers turned to gold exchange or rental jewellery options, further highlighting Gold Demand Drops After Modi’s Appeal in consumer behaviour trends.
Market Outlook Remains Uncertain
Experts believe the gold market is currently adjusting to both policy changes and shifting demand patterns. While demand has slowed, price movements remain unstable. Therefore, investors and consumers continue to stay cautious.
The long-term impact will depend on future economic policies and market stability, as the trend of Gold Demand Drops After Modi’s Appeal continues to shape market sentiment.
Key Points of the news:
- PM Narendra Modi’s appeal to avoid gold buying for one year triggers major market reaction.
- Gold demand in India falls sharply by nearly 70%, dropping from 25 tonnes to 7.5 tonnes.
- Jewellery stocks like Titan and Kalyan Jewellers decline by 6%–9% due to weak sentiment.
- Gold prices show volatility, first falling then rising after import duty increased from 6% to 15%.
- Consumers shift behaviour toward old jewellery use, exchange, and rental gold options.
