New Delhi, Feb. 21 -- Retail buyers in India are opting to exchange old gold jewellery for new, rather than making fresh purchases, at a time when gold prices are skyrocketing, World Gold Council (WGC) said in its latest India gold market update.

"Additionally, as gold prices surged past previous thresholds, many consumers are also taking the opportunity to sell old gold and lock in profits," WGC's India gold market update read.

The record-breaking surge in gold prices has dimmed the appeal of the retail jewellery demand. The drop in gold imports in January also indicates the pullback in demand.

This slowdown in jewellery demand has left retailers reluctant to restock, as they face challenges in meeting payment terms with manufacturers...