People related to the market in India say that some buyers are available in the market because of the wedding season. Gold has to be given in marriage, so they are forced to buy it. But it has been observed that most of the buyers are reducing the amount of gold they buy or are scrapping old jewelery to make new jewelery to save money. Fearing that the price may increase again, some people are buying jewelry in advance. Everything is already expensive. Along with this, as the price of gold is increasing, it is becoming difficult to preserve the tradition of gifting gold in social events like weddings and dinners.
Fluctuations in commodity prices depend on supply and demand. But consumer behavior matters when it comes to gold. If one thinks that inflation will increase in the future, then trust in money decreases. When inflation increases, the value of money decreases. Then it is thought that some products should be bought and kept which are not perishable. It is not that the supply of gold keeps coming from the gold mines year after year. So, consumer behavior is more important here than demand-supply relationship.