Ahmedabad's Akha Trij Gold Demand to Plunge as High Prices Deter Buyers
Gold demand during the Akha Trij festival in Ahmedabad is anticipated to remain notably subdued this year, with jewellers forecasting substantially lower sales compared to the previous year. Elevated prices and a cautious consumer mindset are significantly impacting purchasing decisions, creating a challenging environment for the precious metals market.
Sharp Decline in Expected Sales Volume
According to trade estimates provided by the India Bullion and Jewellers Association (IBJA), gold sales in Ahmedabad reached approximately 50 kilograms during the festival last year. This year, however, projections indicate a likely drop to between 30 and 40 kilograms, marking a pronounced decrease in both muhurat and sentiment-driven buying activities.
This represents the second consecutive year that gold sales in Ahmedabad on Akha Trij, which falls on April 19, are expected to remain below the 100-kilogram threshold. Industry experts highlight that advance bookings, traditionally a robust indicator of Akha Trij demand, have remained exceptionally weak.
Weak Advance Bookings and Muted Sentiment
Hemant Choksi, General Secretary of the Manek Chowk Choksi Mahajan, elaborated on the current situation, stating, "Bookings are hardly there for jewellery or bullion, so we do not anticipate much demand. Even the demand for silver is muted. Cautious spending is clearly visible, and that reflects the overall sentiment."
This softness in demand persists despite the festival's considerable cultural significance as an auspicious day for acquiring gold. Jewellers have observed that soaring prices have substantially dampened consumer enthusiasm. Gold is presently trading at around Rs 1.55 lakh per 10 grams, plus GST, with prices experiencing sharp increases over recent days.
High Prices and Broader Economic Factors
Manoj Soni, an Ahmedabad-based jeweller, provided further insight, noting, "The demand is barely 15% to 20% of the normal level at present. Prices are still high, and sentiment is poor. Consumers are not ready to spend on luxury commodities, while investors remain in a wait-and-watch mode."
He added that volatility across various asset classes, including equities and real estate, has further influenced buying decisions, causing many to postpone or reconsider investments in gold.
Investment Demand Slows Amid Market Uncertainty
Echoing these concerns, Haresh Acharya, Director of IBJA, commented, "Investment demand has slowed amid uncertain market trends. The stock market is showing a zig-zag pattern, and globally too there is volatility. We expect around 40 kilograms of sales this year."
Jewellers across Ahmedabad will keep their shops open on Sunday for the occasion, but footfall is anticipated to remain tepid. With household incomes under pressure and discretionary spending tightening, Akha Trij this year may fall short of its usual sparkle, signalling a broader pause in gold consumption within the region.
