Modi’s Call to Pause Wedding Gold Purchases Meets Mixed Market Reaction

Prime Minister Narendra Modi appealed to citizens in May to postpone non‑essential gold purchases, especially for weddings, for a period of one year. He warned that soaring crude oil prices and rising import costs were putting pressure on foreign‑exchange reserves.

The appeal came amid a backdrop of rising global economic challenges caused by geopolitical tensions in West Asia. While the call resonated with some consumers, the overall investment appetite for gold remained resilient, as investors continued to view the metal as a hedge against uncertainty.

Financial analysts expect that upcoming policy decisions by the Reserve Bank of India, as well as the U.S. Federal Reserve’s stance on interest rates, will shape the next phase of gold demand in the country.