- By Aditya Pratap Singh
- Mon, 11 May 2026 01:31 PM (IST)
- Source:JND
Prime Minister Narendra Modi's remark, appealing to citizens to avoid buying gold for a year, sent a deep shock to jewellery stocks as they traded sharply down during the early hours on Monday. The stock market also crashed by over a per cent amid weak global cues and broad-based selling pressure.
The PM's remark has become a matter of talk across the nation. The prime minister also urged citizens to postpone foreign travel and save energy as much as possible. While many got an understanding that the appeal has to do with the recent energy supply constraint due to the West Asia crisis, common citizens were not able to comprehend the reason behind the appeal to stop buying gold for a year.
Stop Buying Gold For A Year--What's Behind PM Modi's Appeal
According to commodity market experts, PM Modi’s remarks have a direct connection with India’s macroeconomic stability and import management, as the nation is one of the top importers of gold in the world. In FY26 itself, India imported nearly a record $72 billion worth of gold, making it the country's second-largest import category after crude oil.
Also Read: Kalyan Jewellers, Titan, Senco Gold Shares Fall Up To 9% On PM Modi's Remark; Gold Price Dips
"India is one of the world’s largest gold importers, and during periods of elevated crude oil prices and global uncertainty, high gold imports put additional pressure on the country’s trade deficit and the rupee," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
As per Trivedi, the timing of the statement is important because India is currently facing a combination of higher crude prices, geopolitical tensions linked to the US–Iran situation, and pressure on the currency due to rising import bills.
Gold imports require large inflows of foreign currency, mainly dollars.
"At a time when policymakers are trying to stabilise the rupee and control external risk, discouraging unnecessary imports becomes an important strategy," Trivedi noted.
According to Kaynat Chainwala, AVP - Commodity Research, Kotak Securities, PM Modi's appeal to avoid gold purchases for a year is a direct response to the severe pressure the Hormuz disruption is placing on India's external accounts.
"With energy import costs surging simultaneously and the rupee under pressure from West Asia tensions, reducing discretionary gold imports is effectively a current account defence measure, prioritising dollar conservation during an acute period of supply disruption and forex strain," Chainwala said.
Impact Of PM Modi's Remark On Domestic Commodity Market
The analyst highlighted that the appeal is unlikely to significantly change long-term Indian demand for gold because gold remains deeply linked to savings, investment, and cultural buying patterns.
"However, in the short term, it may slow discretionary purchases, particularly in jewellery demand, and create cautious sentiment across bullion and jewellery-related businesses," Trivedi stated
From a price perspective, gold continues to remain highly sensitive to global macro developments.
A strong rally in gold can emerge if geopolitical tensions escalate again, crude prices remain elevated, central banks move towards rate cuts, or the dollar weakens sharply, he noted.
"The implications for domestic gold prices are limited. The appeal carries no regulatory force and is unlikely to have a lasting impact on deeply cultural buying behaviour, particularly during the wedding and festive season," Chainwala highlighted.
Jewellery Stock Today
Jewellery stocks, including Kalyan Jewellers, Senco Gold, Titan, PC Jeweller and others nosedived up to 9 per cent during early trade on Monday amid heavy selling pressure after Prime Minister Narendra Modi appealed to avoid buying gold for a year.
Speaking at an event in Hyderabad, the Prime Minister urged people to avoid buying gold for a year as the country bears the pressure of rising trade deficit amid weakening Rupee due to surge in oil prices amid the West Asia war crisis.
Stock Market Today
Meanwhile, the key domestic equity indices were trading over 1 per cent lower due to broad-based selling amid a spike in crude prices, weak global cues after US President Donald Trump declined Iran's proposals. AT the time of writing, BSE Sensex was at 76,441.65, down 886.54 points or 1.15 per cent. Nifty50 quoted at 23,923.60, down 252.55 points or 1.04 per cent.