A Review Paper on the Impact of Gold Price Fluctuations on the Middle Class

Rovika Prem

doi:10.36948/ijfmr.2025.v07i03.49938

A Review Paper on the Impact of Gold Price Fluctuations on the Middle Class

Author(s)	Dr. Rovika Prem
Country	India
Abstract	This study explores the dynamics of gold in the financial behaviour of middle-class households in emerging economies and its impact on their cultural lifestyles. With an in-depth study and deep insights of the deep rooted cultures and behaviour of the middle class, it examines how with fluctuations in gold price there is a direct impact and influence on the middle class in their perceptions of their social status. It also impacts their savings decisions, investment decisions and wealth ownership by genders in the family. In India, gold is traditionally viewed as a safe financial asset and saving tool. Additionally, it also plays a pivotal role as a family giveaway with direct bearings on family status and pride especially in rituals, marriages, child birth occasions in families and dowries. This giving and gifting cycle of gold is in continuum and passed on from generation after generation leading to its continuous demand even in the face of rising prices. This dual role of offering safety and at the same time a social status symbol and therefore having it at all costs creates financial pressures particularly for the economically weak middle class and the not so well informed and digitally excluded segments of the population. Gender dynamics further complicate this landscape, as gold often represents the only form of tangible wealth owned by women. Its price fluctuations impacts both financial autonomy and household power equations for the women in the household. Based on these analysis, the study suggests many initiatives. These include integrated policy responses from the government, tax-incentivized gold bonds, focus on financial education of the weaker sections of society especially for women and educating them on alternative avenues of investment. Ultimately, it purports that addressing gold-related vulnerabilities requires a holistic approach that respects tradition while promoting financial inclusion and economic resilience.
Keywords	Gold prices, wealth, power, savings, middle class, inflation hedge, financial instrument, investment behaviour
Field	Sociology > Banking / Finance
Published In	Volume 7, Issue 3, May-June 2025
Published On	2025-06-30
DOI	https://doi.org/10.36948/ijfmr.2025.v07i03.49938
Short DOI	https://doi.org/g9r8ct

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A Review Paper on the Impact of Gold Price Fluctuations on the Middle Class

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