Spot High prices of gold in the markets can affect its demand in short-term, but experts believe that the shopping of weddings will keep the market sentiment strong. At this time the price of gold has crossed the level of ₹ 1 lakh per 10 grams. On Tuesday, the price of 24 carat gold in the bullion market of Mumbai was ₹ 1,01,350 per 10 grams and 22 carat gold was ₹ 92,900 per 10 grams.
Hope of good demand in weddings season
Rajesh Rokade, president of the All India Ratna and Jewelry Domestic Council, said that a sudden increase in gold prices may have some effect on demand, but this effect will be temporary. He said that there is a positive atmosphere in the market and good demand is expected in the upcoming Akshaya Tritiya and the wedding season. He cited import data in 2023 and 2024, saying that despite gold prices being 25-30% higher in 2024, 802 tonnes of gold was imported against 741 tonnes in 2023, which reflects strong demand.
And may increase prices
Saurabh Gadgil, chairman of PN Gadgil Jewelers, described the market as positive and said that gold prices may increase further in future. He admitted that there is some pressure on the volume level due to ever increasing prices, but the customer sentiment is positive, which is a good sign for the industry.
How much will be the effect?
Avinash Gupta, vice-president of the All India Ratna and Jewelry Domestic Council, said that crossing gold prices including GST can reduce demand by 10-15% in demand by crossing ₹ 1 lakh per 10 grams. However, he said that this effect can be reduced by the positive spirit of consumers due to Akshaya Tritiya and the wedding season. He also said that gold prices are increasing continuously and there is a possibility of moving forward.
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