Now Reading: Gold prices surge 7% in 10 days, festive demand holds
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Gold prices surge 7% in 10 days, festive demand holds
Gold prices rose 7% in the past 10 days to Rs 1.52 lakh per 10 grams, one of the sharpest short-term jumps in months. Despite the rally, consumers are still buying ahead…
The Story in Brief
Gold prices rose 7% in the past 10 days to Rs 1.52 lakh per 10 grams, one of the sharpest short-term jumps in months. Despite the rally, consumers are still buying ahead of the festive season, jewellers say. Joy Alukkas, chairman of Joy Alukkas Group, expects volume demand to drop 10% year-on-year, but value spending to rise as buyers expect prices to cross Rs 1.60 lakh soon. Some retailers report lower footfall, while lightweight and lower-carat designs gain traction.
Separately, gold jewellery exports rose 9% in June to Rs 9,972 crore, driven by demand from UAE, Hong Kong, Singapore and the UK, according to Gem and Jewellery Export Promotion Council data. Overall gem and jewellery exports inched up to $2.35 billion in June, but cut-and-polished diamond exports fell 18% to Rs 8,398 crore.
The Indian Opinion
The narrative that high gold prices will crush demand is too simple. Sales volume is down, but value and exports are up, and buyers are adapting with lighter designs and fixed budgets. The real test is whether sentiment holds if prices breach Rs 1.60 lakh in the coming weeks, or if the shift to lower-carat gold becomes permanent. That will show if tradition bends to price, or the other way around.
Sources (2): retail.economictimes.indiatimes.com, thehindubusinessline.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
