Gold and silver prices have continued their upward trend this week, making jewellery buyers and investors cautious across the state. Major cities including Mumbai, Pune, Nagpur, and Nashik have witnessed steady increases in gold rates, while silver prices have also climbed significantly. The surge in precious metal prices comes ahead of the wedding and festive season, affecting both retail demand and household budgets.
Market analysts attribute the recent rise to a combination of global economic uncertainties, strong international demand, and fluctuations in the Indian rupee. With tensions in international markets and expectations of rate cuts by global central banks, investors are turning once again to gold as a safe investment option.
Gold Prices Touch New Highs
In Mumbai, 24-carat gold is currently trading above Rs 75,000 per 10 grams, while 22-carat gold hovers close to Rs 69,000. The surge has left many jewellery buyers reconsidering their purchases. In Pune and Nagpur, similar price trends have been recorded, with jewellers reporting a decline in walk-in customers compared to previous months. Nashik’s bullion market also reflected a sharp rise, as both small investors and traditional buyers hesitated to make large purchases.
Local jewellers say that while the festive period usually brings strong sales, this year the high prices have dampened the sentiment. Some customers are opting for lightweight jewellery or smaller gold coins as an alternative to heavy ornaments.
Silver Prices Also on the Upswing
Silver, often considered the “poor man’s gold,” has also seen a sharp increase in Maharashtra. In Mumbai, silver prices are currently trending above Rs 92,000 per kilogram, reflecting strong industrial demand and global price momentum. Pune, Nagpur, and Nashik have reported similar price ranges. Jewellers and traders say that silver’s increasing industrial use — particularly in solar panels, electric vehicles, and electronics — has contributed to its growing value.
Investors who traditionally preferred silver for gifting during festive occasions are now showing hesitation due to the rising costs. Traders say that despite the high prices, there is still moderate buying in rural areas, mainly for upcoming wedding ceremonies and ritual uses.
Market Experts Cite Global and Domestic Factors
According to financial market experts, several international and domestic factors are influencing gold and silver prices:
- Global investors are shifting their portfolios toward precious metals due to concerns about inflation and market volatility.
- The U.S. dollar’s relative weakness against major currencies has increased gold’s appeal worldwide.
- Central bank gold purchases in several countries have further boosted demand.
- In India, a weaker rupee compared to the U.S. dollar has added to the local price rise.
Commodity analysts also point out that international gold prices have been hovering near historic highs, currently standing around $2,500 per ounce. The Indian market, being closely linked to global movements, has reflected these fluctuations rapidly.
Demand Shifts in Maharashtra
Jewellers across Maharashtra have confirmed a mixed trend in consumer behaviour. In Mumbai’s Zaveri Bazaar and Pune’s Laxmi Road, some buyers are rushing to purchase before prices rise further. However, many middle-income families are postponing purchases in the hope of future corrections.
In Nagpur’s Itwari market, bullion traders have observed a shift toward digital gold and gold-based investment products. Younger buyers are exploring alternatives such as gold Exchange-Traded Funds (ETFs) and Sovereign Gold Bonds (SGBs) instead of physical jewellery. In Nashik, local jewellers reported that customers are preferring silver coins and lightweight ornaments as budget-friendly options.
Festive Season and Wedding Demand Under Pressure
The ongoing festive and wedding season usually contributes to strong sales in the precious metal market. Traditionally, Diwali and the following months see a surge in gold and silver buying across Maharashtra. However, the current price spike has changed the pattern this year.
Jewellers in Pune and Mumbai describe lower-than-expected demand for wedding jewellery, although orders for customized and lightweight pieces are gaining attention. Bridal jewellery sets that once cost Rs 6–7 lakh are now crossing Rs 8 lakh, putting strain on wedding budgets. Many families have chosen to rework old jewellery instead of purchasing new ones.
Investors Look for Long-Term Opportunities
While short-term buyers are anxious about high prices, long-term investors remain positive. Gold has consistently proven to be a hedge against inflation and market instability. Investment advisors continue to suggest a small but diversified allocation toward gold, especially for portfolio balance.
Experts say that if global uncertainty continues, gold could remain strong in the coming months. However, a price correction is possible if central banks in major economies decide to adjust interest rates or ease inflation targets. For silver, the outlook remains optimistic due to its growing industrial applications.
Maharashtra’s Bullion Market Outlook
Traders believe that despite the temporary slowdown in retail demand, Maharashtra’s bullion market will continue to remain strong in the long term. Urban markets like Mumbai and Pune will see increased investment demand, while cities such as Nagpur and Nashik may drive rural and semi-urban purchases, especially around wedding seasons.
Local associations have also urged the government to consider measures to support jewellers, such as revising import duties or providing easier access to gold loans for small traders.
As gold and silver prices continue to rise, the coming weeks will be crucial in determining whether consumer sentiment stabilizes or the market experiences further correction. For now, Maharashtra’s jewellery sector is closely watching international trends that could shape domestic prices in the near future.
