Gold price hits record high in Ahmedabad

AHMEDABAD: Gold price hit a record high price of Rs 54,130 per 10 gram in Ahmedabad on Monday. Yellow metal price surged by Rs 1,150 against Saturday’s Rs 52,900 per 10 gram.
Analysts attribute the rise in gold price to global factors and economic uncertainty. Haresh Acharya, director, India Bullion & Jewellers’ Association (IBJA), said, “A weaker US dollar in the international market, intensified tensions between US and China in addition to surge in Covid-19 cases in various countries added to the economic uncertainty.This led increasing number of investors to move towards safe-haven investment, thus causing a sharp rise in international price of gold, which followed the domestic rally.”
Yellow metal price rose in the international market as well to touch the highest ever level of $1,934 per ounce. With the fresh surge, gold delivered 51% returns in a year; against a price of Rs 35,840 per 10 gram on July 27, 2019. TOI reported on Sunday that the yellow metal proved to be the best asset class for investors who had invested last year.
The rise in yellow metal price however, has proven to be detrimental for retail demand as jewellery sale has taken a major hit. “There is a clear recession in the jewellery market as buying is hardly there. People are coming to buy light-weight jewellery but no major purchases are taking place,” said Jigar Soni, vice-president, Jewellers’ Association of Ahmedabad.
Wedding occasions are also deferred or turned into subdued affairs in the time of a pandemic and therefore, the demand for jewellery has further taken a hit. Industry players however revealed that investors have begun moving towards bullion amid the price rally.
“Gold has been delivering 3% returns every week since its upward rally past the Rs 50,000-mark began. As a consequence, people whose fixed deposits matured in the recent past, have begun investments in the yellow metal in the form of bars and coins. Other high networth individuals too have been investing in gold anticipating better returns,” Soni further went on to say.