Gold prices scale ₹80K peak ahead of Dhanteras, ₹4K hike in 6 days
Times of India | 22 October 2024
Kolkata: A week before Dhanteras, the price of 24K gold in Kolkata crossed Rs 81,000 for 10 gm, raising speculations among buyers and jewellers in the city. In the past six days, the price of 24K gold in Kolkata has increased by almost Rs 4,000 per 10 gm.
Gold prices have consistently been on a high since the past two years after the conflict between Russia and Ukraine broke out.Continuing geopolitical tension primarily prompted by the Israel-Iran conflict has created further uncertainty in the international market. Gold, considered to be a stable investment option, has seen a sharp rise in prices. On Monday, the price of 24K gold in the Kolkata market was Rs 81,380 excluding GST.
City jewellers said that they have not witnessed such a sharp rise in gold prices since the 2008-12 crisis in the US. On Sept 30, the price of gold in Kolkata was Rs 77, 240 per 10 gm. It increased to Rs 77,400 per 10 gm on Oct 15. On Oct 20, gold price excluding GST was Rs 80,800 per 10 gm.
According to industry insiders in Kolkata, jewellery sales in Kolkata during Durga Puja were down by 22-30%. “The market sentiment was not much in favour of heavy buying,” said a city jeweller. According to him, many jewellers who have placed orders expecting Dhanteras sales to match the levels of last year, are now under pressure.
Bablu Dey, president of Swarnashilpo Bachao Forum, feels that the inquiries have started growing in the past few days. “Some of the jewellery shops in Bowbazar announced Dhanteras offers even on Sunday. The extended offer period will help them to mitigate any reduction in footfalls during the cyclone anticipated to hit south Bengal during the week,” said Dey.
“The sharp increase in the price is definitely a cause of concern. But the sentiments in the Kolkata market have started to turn positive since Durga Puja. This is an indication of a healthy Dhanteras sales this year,” said Rupak Saha, zonal member of the Gem and Jewellery Trade Council of India.
According to Anargha Uttiya Chowdhury, director of Anjali Jewellers, gold has never lost its shine among buyers. “The more volatile the market, the more bullish is the demand for gold. It is considered as a safe haven among buyers. Moreover, apart from marriage buyings, new buyers will continue to invest in gold,” he said.
Suvankar Sen, MD and CEO of Senco Gold and Diamonds, felt that prices might go up further in the international market. “Quantity may be hit, but we will see an increase in terms of value. Financial market always tends to have faith in gold and silver in such volatile situations. We had seen such a situation when the subprime crisis had hit the US market in 2008, but buyers did not lose faith even then,” he said.