Gold price sees ₹2.4k fall over fortnight, highest decline this yr
Times of India | 6 May 2024
Kolkata: Gold prices have come down significantly over the past fortnight raising hope for a glittering Akshay Tritiya this year. Jewellery shops across the city are hopeful of a strong demand this season.
Gold in the Kolkata market was hovering around Rs 6,873 per gram or Rs 68,730 per bhari for 22 karat pure metal. This is almost Rs 2,400 less than what it was a fortnight back.City jewellers said the decline was one of the highest this year.
“This is a good time to buy gold as the downslide will not persist for long,” said Rupak Saha, zonal member of Gem and Jewellery Trade Council of India. Gold prices, which have been on the rise steadily over the past couple of years, started hitting a low in April after the crisis in the Middle-East started to subside. “The investors have become less worried about the geo-political tension in the Middle-East perhaps. This has resulted in a downward price correction of gold,” Saha said.
“We were anticipating a downward correction in prices as the increase seemed to be resulting from external factors in the geo-politics. But we didn’t expect such a sharp fall in price. The industry in Kolkata was showing lukewarm reaction to buying because of the high price. If there is not a very significant increase in the next two days, we will have a good sale during Akshay Tritiya,” said Shubadip Roy, designated partner of Bengal Jewellery.
In Feb this year, city jewellers witnessed an increase in demand by 20%. The wedding season commenced in mid-Nov last year and continued till March. It continued again after Poila Boisakh after a small gap. But the heat wave, coupled with the uncertain political situation in India during the poll season, pulled down the demand.
“Akshay Tritiya is round the corner and consumers are thinking this is a great opportunity to buy. I think that the global geo-political uncertainties will continue in the days to come. So any bad news will make the gold price jump again. Consumers also need to realise that the risks and workable political tensions do not go away,” said Suvankar Sen, MD & CEO of Senco Gold & Diamonds.
“Customer movement at jewellery shops in BB Ganguly Street is high. Many try to seize the opportunity and buy gold at the current prices. They normally take delivery on Akshay Tritiya day. However, it will be premature to compare with the last Akshay Tritiya. But we are looking at glittering sales this year,” said Bablu Dey of Swarna, president of Swarnashilpo Bachao Forum.