‘Predictions of Gold Prices Rising Further are Just Rumors’; How to Buy Gold at Lower Rates
The surge in gold prices has led to a significant decline in sales this Akshaya Tritiya, with figures indicating a drop of approximately 30 percent compared to the previous year. As the price of gold has soared, crossing over 1.20 lakh rupees per sovereign, consumers are grappling with the affordability of purchasing jewelry during this auspicious period.
In response to the rising costs, jewelers have introduced a larger inventory of lightweight jewelry to the market this year. A.K. Sabu, a member of the Gold Manufacturers Association, explained to Zee News Malayalam that retailers have focused on lighter pieces to ensure that customers can still participate in the tradition of purchasing gold according to their budgets.
“Jewelers have prepared very small, lightweight ornaments. In light of the high prices, manufacturers have begun creating these low-weight items with new designs, and they have now reached the showrooms. Additionally, 18-karat, 14-karat, and 9-karat jewelry options are readily available, allowing individuals to fulfill their desire to buy gold based on the funds they have available,” Sabu stated.
He further noted that a slight increase in gold prices during festivals like Akshaya Tritiya is a common trend due to increased demand. Addressing speculation about future price hikes, Sabu dismissed rumors suggesting that the price could reach two lakh rupees per sovereign as mere conjecture, stating that there is no indication of such a drastic increase.
Sabu also highlighted the complex global factors influencing the market. He observed that while initial geopolitical tensions, such as the Russia-Ukraine war and conflicts involving Hamas, drove gold prices up, recent tensions involving Iran, the US, and Israel led to a temporary decline. According to expert analysis, this was largely due to rising crude oil prices and the strengthening of the US dollar. Despite the volatility, he emphasized that gold remains central to the global economy and that significant price crashes are unlikely.