By Sutanuka Ghosal
Copyright indiatimes
Gold price crossed the Rs 1.10 lakh per ten gram mark on Tuesday — an all time high — a few days ahead of the country’s biggest consumption period, making jewellers cautious about sales who now feel jewellery demand will be driven mainly by old gold exchange for modern designer pieces. Gold was trading at the retail end at Rs 1,10,540 per 10 gm on Tuesday, according to India Bullion & Jewellers Association (IBJA). With 3% GST, consumers will have to shell out Rs 1,13,856 for 10 gm of gold.”We are expecting the old gold exchange to surge to 45% this festive season as compared to 20-25% last year,” said Saurabh Gadgil, managing director of PNG Jewellers. “Gold volume may shrink by up to 15% during the upcoming festive season because of the price rise but value-wise it is expected to go up by 25-30% as prices have appreciated,” he said. Last year, during this time gold was at around Rs 80,000 per 10 gm with GST. Gold price has appreciated by 42% year-on-year becoming a favourite asset class to the investors across the world.Surendra Mehta, national secretary of IBJA, said that since consumers have understood that gold prices are unlikely to fall below Rs 1 lakh any soon, they have slowly started entering shops.Live Events”In the last one week, there has been good movement of gold in Mumbai’s Zaveri Bazar, one of the leading gold trading hubs in Asia. Investment demand for gold is also rising as there is no sign of gold to cool off any soon. The market is now awaiting gold to cross $4000 per troy ounce mark,” he said.Internationally, gold has surged to an all-time high hitting $3670 per troy ounce amid growing concerns about inflation, economic uncertainty and weakening currencies. The October-December quarter is one of the largest consumption periods for gold in India due to the festive season led by Dhanteras-Diwali and wedding season thereafter. “Gold prices scaled a record peak, supported by a weaker dollar and US yields ahead of the Federal Reserve’s policy meeting this week, where the central bank is widely expected to cut borrowing rates,” said Manav Modi, analyst – precious metal research at Motilal Oswal Financial Services.”Dollar traded near a two and a half – a-month low against the euro; US Yields also slumped in yesterday’s session hovering around 4%. Market participants are awaiting Federal Reserve’s chairman Jerome Powell’s decision and remarks in this week’s policy meeting and a 25 basis points rate cut is expected after a long pause,” he said.Modi said in this week’s policy meeting, along with Powell’s statement, the economic forecasts will also be important to watch for. The US President Donald Trump called for Fed Chair Powell to enact a “bigger” cut to benchmark interest rates via social media posts.”Further, the Israeli military launched a ground offensive to occupy Gaza City has also pushed up gold prices due to high risk on Middle Eastern oil supplies, analysts said.Add as a Reliable and Trusted News Source Add Now!
Gadgil said that rural demand is expected to remain strong this year during the festive season as a good monsoon is expected to result in a robust Kharif crop. Rural India accounts for 60% of the gold consumed in India, which annually hovers between 800-850 tonnes. Gold is considered as an important asset class in rural India and a good crop drives agrarian communities to accrue gold.(You can now subscribe to our Economic Times WhatsApp channel)
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onGoldGold pricesGold prices delhiGold prices newsGold prices mumbaigold price updategold price in Indiaold gold exchangemotilal oswal financial services(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
