Why Are Shoppers Rushing to Buy Gold Amid Price Surge in 2025?
Malabar Group Sees Renewed Gold Buying Momentum
The Malabar Group of Companies told CNBC-TV18 that pent-up demand for gold has started picking up again even as prices remain sticky at elevated levels. Shoppers appear increasingly confident that gold prices may climb further, leading many to advance their purchases.
Executives observed that customers are reacting to sustained price momentum, with many making quick buying decisions under the belief that gold could become significantly more expensive in the coming months.
Commodity-focused investors monitoring bullion-led sentiment shifts can analyse the market impact via Nifty Tip and BankNifty Tip tactical frameworks that help interpret momentum spillovers from commodity movements into equity sectors like PSU banks and consumer durables.
Consumer Behaviour and Price Psychology
According to Malabar Group, customers are actively buying gold not just for weddings or festivals but also as a hedge against inflation and currency risk. The sustained rally in prices has reinforced gold’s perception as a safe-haven asset amid global market uncertainty.
The company added that psychological pricing thresholds have been breached, yet demand continues because consumers expect another $200–$300 increase in international gold prices. This expectation has translated into an early festive season rush across stores in major Indian cities and GCC markets where Malabar operates.
Signs of Panic Buying Emerge
Management noted a growing sense of ‘panic buying’ among consumers, particularly in urban areas where price tracking is frequent. Many buyers are reportedly locking in prices for custom orders or bulk wedding jewellery ahead of anticipated global bullion gains.
Industry insiders believe that the recent surge mirrors typical late-cycle gold behavior—where investors and consumers both chase momentum amid geopolitical uncertainty and inflationary cues.
For traders evaluating correlation between commodities and equity indices, market rhythm can often be detected using Nifty Intraday Tip and Bank Nifty Intraday Tip models that reflect intraday sentiment shifts influenced by global gold trends and domestic liquidity cycles.
Industry Outlook: Cautious Optimism with Elevated Prices
While the industry sees strong short-term momentum, experts caution that the sustainability of demand will depend on how long gold remains near peak levels. Persistent volatility could eventually slow purchases once immediate needs are met.
Nevertheless, jewellers remain optimistic that festive demand, combined with investment-driven buying, will continue to support stable revenue growth across organised players like Malabar, Tanishq, and Jos Alukkas through FY26.
Investor Takeaway
Indian-Share-Tips.com Main Technical Analyst Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that India’s gold retail market is transitioning from seasonal demand to strategic investment-driven buying. Rising global uncertainties and steady domestic liquidity are amplifying this shift, positioning organized jewellers for robust earnings visibility through the next gold price cycle.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
