India’s gold jewellery demand declined by 26% y-o-y in Q1 2022, to 94 tonnes, after reaching record highs in Q4 2021. Fewer auspicious days, combined with a sharp spike in gold prices meant fewer weddings and a pause in retail demand, with households deferring gold purchases in the hope of a price correction.
As a major gold buying festival, we should see Akshaya Tritiya overcome these barriers and provide further impetus to demand in the second quarter. Underlying consumer sentiment is improving, which should also prove supportive. The noticeable intensity of marketing efforts by players on the back of new digital and omni-channel retail strategies will positively impact demand during Akshaya Tritiya. Economic growth, combined with inflationary expectations, are poised to bolster gold purchase this festive season, however price volatility will act as a headwind.”