A Study on Gold Price Volatility and Consumer Buying Behaviour towards Physical Gold

Abstract

Gold has traditionally been considered one of the most reliable and culturally significant investment options, particularly in countries like India. However, frequent fluctuations in gold prices have significantly influenced consumer buying behaviour. The present study examines the relationship between gold price volatility and the purchasing behaviour of consumers toward physical gold. Primary data were collected using a structured questionnaire covering demographic characteristics, purchase behaviour, awareness of price movements, and factors influencing gold buying decisions. Ranking techniques were used to identify the most influential factors affecting gold purchases.

The findings reveal that price fluctuations significantly influence purchase timing and quantity, while cultural traditions and investment motives continue to drive demand. The study highlights the importance of price awareness, financial capability, and family influence in shaping gold buying behaviour. The research provides insights for jewellery retailers, financial planners, and policymakers to understand consumer responses to volatile gold prices.