Gold prices in India have jumped to an intense volatility on the back of firm trend in the global markets on the expectations of US Fed cutting lending rates sooner than expected.
The soaring gold prices have depressed jewellery demand, though exchange of old jewellery for new jewellery and cash has picked up sharply in Mumbai, one of the oldest jewellery markets and a major hub for B2B and B2C jewellery industry.
Kumar Jain from India Bullion and Jewellers Association said that there has been a big rush in almost all the jewellery shops in Zaveri Bazaar in Mumbai in the last two months as consumers are taking advantage of high gold price and exchanging it for new designs by adding little more money from their savings. Most of the consumers are buying jewellery for forthcoming weddings in the family or gift it to their close friends and relatives in a wedding, he added.
According to the Confederation of All India Traders’ estimates, about 3.5 million weddings are to be solemnised till December-end and generate an estimated business of $51 billion this wedding season.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
