A recent decline in gold prices has been a relief for families who are gearing up to buy gold during the wedding season in April-May.

Gold had touched record highs earlier in March at a rate of ₹1.66 lakh per 10 grams. However, gold prices have corrected since then. The current gold rate stands at around ₹1,51,800 for 24K gold and ₹1,39,150 for 22K gold.

Also Read | Sensex, Nifty open higher after Thursday rout; crude eases, easing market jitters

For families who are gearing up to buy gold during the wedding season, this decline in gold prices can be considered a welcome respite. Families can save over ₹1 lakh on a typical bridal collection of 100 grams of gold.

What is behind the price correction

Market experts attribute the decline to a mix of global and domestic factors.

A key driver has been the strengthening of the US dollar. With the US Federal Reserve maintaining a higher interest rate stance, the dollar index has firmed up. Since gold is priced in dollars globally, a stronger dollar tends to weigh on prices.

Profit booking has also contributed to the correction. Investors who benefited from the earlier rally have begun selling, adding pressure on prices. Additionally, geopolitical tensions, which had earlier pushed gold higher, have stabilised to some extent. This has reduced the “safe haven” demand that typically drives gold during uncertain periods.

Wedding demand, festive buying in focus

The timing of the dip is significant, coinciding with one of the busiest wedding seasons of the year. Auspicious dates are spread across April and May, driving strong jewellery demand.

Akshaya Tritiya, which falls on April 19 this year, is also expected to boost buying. Jewellers typically roll out offers, including discounts on making charges, and many buyers opt for advance bookings at prevailing rates.

Also Read | Rupee falls to 93.08 against US dollar: Key reasons behind record low explained

Window may be short-lived

While this is the current trend, analysts say that this trend is likely to be for a short period of time only. Some of the global forecasts indicate that by the end of 2026, the price targets will be higher.

Experts have suggested that consumers buy in installments, i.e., they should buy some of their requirements now instead of waiting for a further dip in prices. As demand is likely to rise sharply in the coming weeks, this is only a limited window for consumers.

{News Ei Samay does not provide investment advice anywhere. Investment and trading in the share market or any field involve risk. Proper study and expert advice are recommended beforehand. This news is published for educational and awareness purposes.}