Indians celebrated Akshaya Tritiya, the second-biggest gold-buying festival after Dhanteras, when purchasing precious metals is considered auspicious.

“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 jeweller.

Gold prices hit a record high of US$5,594.82 per ounce on Jan 29 and are now trading at around US$4,861.

Gold futures in India, the world’s second-biggest gold consumer, closed at 154,609 rupees (US$1,670) per 10 grams on Friday, nearly 63% higher than at the last Akshaya Tritiya festival.

Except in a few southern Indian states, demand was lower than normal across the rest of the country, said Surendra Mehta, national secretary at the India Bullion and Jewellers Association.

Retail buyers have been shifting toward gold coins, which are easier to liquidate, even as jewellers offered discounts on fees for crafting jewellery to attract buyers, said a Mumbai-based jeweller.

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

Gold-buying patterns in India are changing, with purchases no longer concentrated only during festivals as price-sensitive buyers make purchases throughout the year whenever prices dip, said a Mumbai-based bullion dealer with a private bank.

India issued an order on Friday listing banks authorised to import gold and silver, providing relief for banks that were forced to halt imports because the list’s publication was delayed.