Tirupati: While gold prices shine for investors, consumers are feeling the pinch—especially during festive seasons like Akshaya Tritiya. Skyrocketing rates have dampened enthusiasm, with sales expected to dip notably this year.

Gold prices have surged from Rs. 73,000 to nearly Rs. 96,000 per 10 grams in the past year, briefly crossing Rs. 1 lakh. This rise, driven by global uncertainties and interest rate cut expectations, has made gold a safe-haven asset but less affordable for retail buyers.

Jewellery merchants are under pressure. KV Satyanarayana, President of the Tirupati Gold Jewellery and Silver Merchants Association, noted that 22-carat gold has jumped to Rs. 8,980 per gram from Rs. 6,500 a year ago—an increase of Rs. 2,500. This sharp hike has subdued buyer interest.

Akshaya Tritiya usually boosts sales through pre-bookings and walk-ins, but this year’s footfall is weak. “Each shop is getting fewer than five bookings,” said Satyanarayana, estimating a 50% sales drop from last year.

Consumer behavior has also shifted. Buyers now shop with fixed budgets, focusing on affordability over quantity or design. “They aren’t worried about grams—just spending limits,” Satyanarayana added.

The outlook remains uncertain. Forecasts suggest prices could climb to Rs. 1,04,000–1,10,000 per 10 grams by April 2026, with another spike likely this year.