India's leading jewelry retailer Titan Company has indicated that record-high gold prices are suppressing demand in the world's second-largest gold market, making shoppers increasingly cautious. According to Chief Financial Officer Ashok Kumar Sonthalia, current sales growth is primarily driven by higher prices rather than increased volume, with buyer growth remaining sluggish. He expressed the company's desire for a balanced scenario, where both the number of buyers and the average transaction value rise.

Data from the World Gold Council shows a significant decline in India's gold jewelry demand, with sales dropping 24% to 430.5 tons in 2025. Rising prices have constrained budget-conscious buyers, reducing the quantity of gold they can afford. Gold imports into India are expected to continue declining this year.

Sonthalia noted that Titan is promoting gold exchange programs and observing a growing consumer preference for lower-carat jewelry. Despite weak volume, the company reported jewelry sales of 209.3 billion rupees during the key wedding and festive season, a 42% annual increase that exceeded analyst expectations, marking one of its strongest quarters excluding the pandemic period.

In a report released Thursday, the World Gold Council projected India's gold imports would fall further this year, as record prices weaken jewelry demand. The country's bullion imports already declined by 11% to 710.9 tons in 2025 and may drop to between 600 and 700 tons in 2026.

In India, where jewelry dominates gold demand, the price surge is forcing buyers to either reduce purchase sizes or opt for lighter-weight ornaments. The World Gold Council stated that global jewelry consumption fell to a five-year low of 1,542 tons in 2025, with demand declining across all major markets. Indian gold jewelry demand fell 24% to 430.5 tons. The council noted that consumers typically operate within fixed budgets for such purchases, limiting the amount of physical gold they can acquire.

In northern India, 14-karat gold jewelry has gained popularity among younger urban buyers seeking more affordable options. However, the council also mentioned that lightweight alloy jewelry continues to face reservations across India, as it dilutes the core rationale for holding gold: long-term capital preservation.

Some Indian buyers have shifted toward purchasing gold bars and coins. Investment buying in India grew 17% from the previous year to 280.4 tons in 2025, partly offsetting the decline in jewelry sales.