MUMBAI – Gold demand during one of India’s key buying festivals remained subdued on Sunday as record-high prices dampened jewellery purchases, even as investment demand saw a modest uptick.

Indians marked Akshaya Tritiya, the country’s second-largest gold-buying festival after Dhanteras, when purchasing precious metals is traditionally considered auspicious. However, elevated prices discouraged many consumers from making jewellery purchases.

“The sharp rally in prices curbed jewellery demand. In volume terms, buying was lower as consumers held back, though in value terms spending was higher due to elevated prices,” said Amit Modak, chief executive of PN Gadgil and Sons, a Pune-based jeweler.

Spot gold prices hit a record $5,594.82 per ounce on January 29 and were trading around $4,861 on recent sessions.

In India, the world’s second-largest gold consumer, gold futures closed at 154,609 rupees ($1,670) per 10 grams on Friday. That level is nearly 63% higher compared with the last Akshaya Tritiya festival.

Demand was weaker than usual across most regions, except for a few southern states, according to Surendra Mehta, national secretary at the India Bullion and Jewellers Association.

Retail buyers have increasingly shifted toward gold coins, which are easier to liquidate, even as jewellers offered discounts on making charges to attract customers, said a Mumbai-based jeweler.

Data from the World Gold Council showed India’s jewellery demand fell 24% in 2025 from a year earlier, while investment demand rose 17% to its highest level since 2013.

Market participants say gold-buying behavior in India is gradually changing, with purchases no longer concentrated solely around festivals. Instead, price-sensitive consumers are increasingly buying throughout the year whenever prices dip, according to a Mumbai-based bullion dealer with a private bank.

Separately, the government issued an order on Friday listing banks authorized to import gold and silver, easing supply concerns after delays in updating the approved importer list had forced some banks to suspend imports.

($1 = 92.5980 Indian rupees) -Reporting by Rajendra Jadhav; Editing by Lisa Shumaker/Reuters