Gold rises to new high of Rs 71,080, denting demand
Price of the yellow metal rose 1.72% or Rs 1,198 per 10 gm from last Friday.
Rising prices of precious metals come ahead of Gudi Padwa and Ugadi, the auspicious day on the Hindu calendar marking the beginning of New Year in certain parts of the country. The price surge has dampened mood among potential customers who prefer to buy gold to celebrate this auspicious day, which will fall on April 9 this year.
Sachin Jain, regional CEO, India at World Gold Council said: «Gold has now touched a historic high price of Rs 71,000 per 10 gram in India. There has been a near stagnant jewellery demand in the first quarter of calendar year 2024 in rural and urban centres as per anecdotal feedback from jewellery retailers.»
«Also, during the general election period for the next two months, there will be heightened scrutiny on the movement of gold and cash. Except during festivals, gold jewellery demand will likely remain subdued during a large part of Q2 of CY24 even if prices moderate over the coming months. On the flip side, higher prices could encourage investment into gold-linked digital and investment products,» Jain added.
Higher prices is leading to lower sales volume at jewellers though value-wise, sales are at par with last year. Baby George, chief executive of retail jewellery chain JoyAlukkas said, «Volume-wise sales have gone down by 5% this Ugadi compared to last Ugadi which was on March 22. We are offering a gm of silver against a gram of gold purchased to attract customers this Ugadi».
The current bull run
