Gold tops Rs 64,000 per 10 gm; wedding demand takes a hit
Gold price rose to the highest on record at more than Rs 64,000 per 10 gm on Monday, dampening demand as the new wedding season has just begun and raising concerns among people who have marriages planned in their families.
The yellow metal touched Rs 64,200 per 10 gm on the Multi Commodity Exchange (MCX) in early morning trade, taking a cue from the international market. Silver, which is termed as a poor man’s gold, also rose to a new high at Rs 78,331 per kg on the MCX.
At around 4 pm, gold was trading a bit lower around Rs 63,850.
Internationally, gold reached a new record high of $2,148 a troy ounce (31.1 gm), surging over 3% in early morning trade on Comex, the main exchange for gold and silver futures in the US.
“The surge in gold prices was driven by expectations that the (US) Federal Reserve will maintain interest rates this month and potentially cut them in 2024. Despite Fed chair Jerome Powell's caution against premature rate-cut expectations, traders are confident in a 60% chance of a rate reduction in March, fully pricing in a cut by May,” said Jatin Trivedi, vice-president (research) at LKP Securities.
The price gain has already started weighing on demand.
Suvankar Sen, managing director at jewellery retailer Senco Gold & Diamonds, said: “With gold prices touching Rs 64,000 per 10 gm, the demand for gold has taken a dip.
Those who have marriages in families are buying less gold so that it does not cross their budget. Volumes are taking a hit.
Footfalls at our stores have come down.”
The sudden surge in gold prices has created an air of uncertainty among consumers, Sen said. “The gifting category for gold has completely dried up with people shifting to silver and fashion jewellery … However, diamond
