Despite a recent soften ing in gold prices, jewellery re tailers in Panjim are witnessing a subdued market response, with buyers largely opting to stay on the sidelines rather than capital ise on lower rates. Industry participants say the expected boost in demand follow ing the price correction has failed to materialise, pointing instead to a growing “wait-and-watch” sentiment among consumers who anticipate further declines. Yogesh Patankar, Assistant Manager at a city jewellery store, said the hesitation is widespread. “Customers are holding back on the assumption that prices may drop further. As a result, purchas ing has taken a visible hit,” he said. He noted that while enquiries have increased, they have not con verted into actual transactions. “There is curiosity in the market, but not buying at the scale one would expect,” he added. Echoing similar views, Niyati Naik, another Panjim-based jew eller, said, “Gold prices have fall en, and so have walk-ins. Perhaps when prices rise, the fear of fur ther increases will push people to buy quickly.” Naik added that jewellers have been offering discounts on making charges and promotional schemes to attract customers, but these efforts have not significantly im proved conversions in recent weeks. An executive from a newly opened jewellery outlet in the city said overall sales have remained largely flat despite the dip in prices. “There has been no significant improvement in sales.
Business has been on the lower side,” the executive said, noting that while festivals provided a slight boost, it was not substantial. Retailers note that this behaviour marks a departure from the traditional pattern, where even marginal price corrections would trigger opportunistic buying, particular ly in gold’s price-sensitive retail segment. The current reluctance, however, is being driven by heightened volatility and uncertainty in global markets. Gold prices, which had surged earlier on safe-haven de mand, have recently softened amid shifting geopolitical signals and evolving expectations around interest rates. This volatility has also exposed a broader contradiction: gold’s perceived role as a hedge is being tested at a time when both bullion and equities have come under pressure simultaneously. As the war involving Iran intensifies, global financial markets have witnessed sharp swings, with equity indices correcting and gold failing to deliver the consistent upside typically expected during periods of geopolitical stress. For many investors, this parallel decline has undermined the conventional strategy of using gold as a counterbalance to stock market risk. Market observers say this dual correc tion has left sections of investors “stranded”, particularly those who moved into gold at elevated levels seeking safety from equity turbulence. The spillover of this sentiment into the retail segment is becoming increasingly visible. Consumers, who often take cues from broader price trends and investor behaviour, ap pear unconvinced that the current dip represents a stable buying opportunity. Financial experts, meanwhile, advise investors to view the current price correction from a long-term perspective rather than react to short-term fluctuations.
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Mahesh Pai, a financial expert, said gold continues to hold value as a long-term asset. “Gold price corrections should be viewed with perspective, not panic. Investors in digital or virtual gold should stay invested rather than exit during a dip,” he said. He added that the current phase could be favourable for those looking to buy gold for consumption purposes such as weddings or gifting. “It is difficult to predict whether prices will fall further or rise again, so if the need is immediate, it makes sense to go ahead with purchases,” Pai noted. For new investors, he recommended gradual allocation instead of lump-sum investments. “Buying small quanti ties at regular intervals can help average out price fluctu ations,” he said, while cautioning that gold should not be treated as an income-generating asset but rather as a di versification tool. Sulaksh S Priolkar, a registered investment advisor, stressed the importance of gold in a balanced portfolio. “It depends on the individual profile, but ideally, everyone should have some exposure to gold—around 10 to 15 per cent. In the long term, gold has always been advisable,” he said. He added that many investors are currently observ ing market trends closely, reflecting broader uncertainty around price movements. Instead, the prevailing expectation is of further down side or, at the very least, continued instability — both of which discourage immediate purchases. Retailers add that this cautious stance is also being rein forced by the absence of strong seasonal or festive triggers, which typically help offset uncertainty-driven hesitation. Retailers attributed part of the slowdown to seasonal factors. “March is typically a lean period, as people focus on exams, admissions, and financial year-end commitments.
This affects discretionary spending such as jewellery,” Ni yati Naik explained. Another emerging trend is a shift in consumer prefer ence toward lightweight jewellery. With gold prices still relatively high overall, buyers are increasingly opting for lighter designs or lower-purity options such as 18-carat gold instead of traditional 22-carat pieces. “There has been a clear drop in demand for heavy items such as thick bangles and large necklaces. Customers are choosing affordability over volume,” Naik said. However, jewellers are cautiously optimistic about the coming weeks, with expectations pinned on Akshaya Tri tiya on April 19, an occasion traditionally associated with gold buying. “We are expecting better sales once April be gins, especially with Akshaya Tritiya,” she said.
