GJC says fluctuating bullion prices have shifted consumer demand towards lightweight jewellery in India | AI Generated Representational Image
Mumbai, June 30: Historic highs in gold and silver prices during the first half of 2026, followed by a sharp correction, have reshaped consumer behaviour and the outlook for India’s gem and jewellery industry, according to the All India Gem and Jewellery Domestic Council (GJC). Bullion Prices Drive Market ShiftIn its half-yearly review released on Tuesday, the industry body said taxation changes, higher customs duty, and global geopolitical tensions were the dominant factors influencing the bullion market during the first six months of the year. It added that evolving consumer preferences and policy reforms would play a crucial role in determining market trends in the second half of 2026.Gold prices touched a record Rs 1,70,480 per 10 grams in January before easing to around Rs 1,42,800 by late June. Silver also crossed the Rs 4 lakh milestone for the first time, reaching Rs 4,02,490 per kg in January before correcting to about Rs 2,25,940 per kg by the end of June.
The Council said the steep price movements attracted investors seeking safe-haven assets but dampened jewellery demand as affordability became a concern. Consumers increasingly shifted towards lightweight jewellery, reflecting both budget constraints and changing fashion preferences.
Industry Seeks Policy ReformsThe report said the increase in customs duty announced in May pushed domestic prices higher, while GST compliance continued to squeeze trade margins. GJC reiterated its demand for reforms to the Gold Monetisation Scheme, saying it could unlock idle household gold, reduce import dependence and strengthen domestic supply.Global developments, including conflicts in the Middle East, rupee depreciation against the US dollar, inflationary pressures and continued central bank purchases of gold, also contributed to market volatility.Festive Demand ExpectedGJC Chairman Rajesh Rokde said the correction in bullion prices represented a natural adjustment after extraordinary highs rather than a market collapse. Despite softer futures prices, retail gold rates remained elevated, indicating continued resilience, he said, expressing confidence that the festive season and the peak wedding calendar in the second half of the year would boost jewellery demand, particularly for lightweight designs.Also Watch:
Vice Chairman Avinash Gupta said affordability remained a key concern and urged the government to strike a balance between revenue generation and industry sustainability. He cautioned that excessive customs duties could encourage unofficial trade channels and reiterated that reforms to the Gold Monetisation Scheme would strengthen the sector while reducing India’s dependence on imported gold.To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/