Gold prices soar to record high, Kashmir buyers wary amid wedding season

Srinagar, Sep 9: Gold prices reached a historic high on Tuesday, hitting Rs 1,12,750 per 10 grams, up Rs 5,080 from Monday, putting families and jewellery buyers in Kashmir on edge during the ongoing wedding season.The surge comes after a dramatic rise of nearly 43 per cent since the start of 2025, when gold was priced at Rs 78,950 per 10 grams. Silver also recorded a sharp increase, reaching Rs 1,28,800 per kilogram.Local jewellers said the unprecedented rise is affecting demand in Kashmir, particularly during the wedding season, which is usually the peak period for gold purchases. “This is traditionally our busiest season, but sales have slowed significantly,” said Tariq Ahmad, a jeweller in Lal Chowk. “Customers are cautious, buying only small quantities or postponing purchases, hoping prices will ease.”Imtiyaz Bhat, another jeweller from Srinagar, noted that families are adjusting wedding plans due to the high prices. “Earlier, brides and grooms’ families would purchase complete sets without hesitation. Now, people are buying fewer grams, smaller jewellery pieces, or opting for lighter designs. Some are splitting purchases over multiple visits to manage costs.”The impact is being felt beyond the showrooms. “Gold is deeply tied to our traditions and weddings here. Many families view it as both a financial investment and a cultural necessity,” said Manzoor Ahmad, a Srinagar resident planning hisr daughter’s wedding. “But these record prices are creating stress. Families are now reconsidering budgets, and some have postponed purchases in hope of a slight correction.”Other buyers echoed similar concerns. “We wanted to buy a diamond-studded gold set for the upcoming wedding season, but daily price hikes are forcing us to rethink,” said Muskan Rather, another local buyer. “Even a minor change in gold rates can significantly impact wedding expenses in Kashmir, where jewellery forms a core part of celebrations.”Global factors are driving the surge. In international markets, gold reached USD 3,659 per ounce on Tuesday, reflecting a combination of safe-haven demand amid geopolitical tensions, expectations of US monetary easing, and a weakening dollar. Analysts said central bank demand, ETF inflows, and speculation about rate cuts have accelerated bullion prices.“The surge is a result of multiple macroeconomic factors—geopolitical tensions, US tariff concerns, and anticipated Federal Reserve rate cuts,” said Trivesh D, COO of brokerage firm Tradejini. “Investors continue to turn to gold as a safe asset, and this trend has been reinforced over several months.” Saumil Gandhi, Senior Analyst at HDFC Securities, added that persistent demand from central banks and investors is keeping prices elevated, and any short-term correction may be limited.In Kashmir, gold is more than an investment—it represents cultural and familial traditions. Jewellery purchased during weddings often forms part of inheritance and social status. Local jewellers warn that sustained high prices could dampen sales and affect the broader local economy, which heavily relies on wedding-related gold purchases. “If these rates continue, smaller jewellers will face losses, and buyers might delay purchases, affecting cash flow and livelihoods,” said Tariq Ahmad.Despite the challenges, jewellers are adapting by offering smaller, lightweight designs, flexible payment options, and installment schemes to attract buyers. “We are trying to balance tradition with affordability,” said Imtiyaz Bhat. “Families still want to celebrate weddings in style, but prices are forcing innovation.”