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Time of India
04-06-2025
- Business
- Time of India
Gold prices seen to face a big crash in just two months
Gold prices may have hit their peak and could decline by 12–15 per cent in dollar terms over the next two months, according to Quant Mutual Fund. 'However, our medium-term and long-term views are equally constructive and we reiterate that a meaningful percentage of your portfolio should be dedicated towards precious metals,' it added. A US-based Morningstar analyst has already forecasted a 38 per cent drop in the next few years. On Tuesday, retail gold prices hovered around Rs 96,960 per 10 gm. With a 3 per cent goods and services tax, the price of 10 gm of gold stood at Rs 99,868. Kavita Chacko, research head of India at World Gold Council, said stability in prices could prompt a resurgence in demand in the world's second-largest consumer of the yellow metal. The rise in gold prices is hurting retailers. Gold jewellery sales in India fell 30 per cent to 1,600 kg on average in the past fortnight, according to the India Bullion & Jewellers Association (IBJA), as prices shot up nearly 5 per cent . 'In the first fortnight of May, which was followed by Akshaya Tritiya, there was some momentum as prices started falling, touching Rs 92,365 per 10 gm on May 15. But since then, the price of the yellow metal has again started to move northwards, which has dampened the demand,' said Surendra Mehta, national secretary, IBJA. Gold's recent rally was fueled by economic uncertainty, inflation concerns, and geopolitical tensions. Investors turned to gold as a safe asset, particularly amid ongoing trade disputes initiated during former US President Donald Trump's tenure. However, multiple factors could now drive prices downward. US trade tensions influencing gold markets Trade tensions between the United States and China are keeping investors on edge. Market participants are now watching closely for a possible call this week between President Donald Trump and Chinese President Xi Jinping. This comes just days after Trump accused China of violating an agreement to reduce tariffs and trade barriers. In Europe, the European Commission has pushed back, stating it will urge the U.S. to lower or eliminate tariffs. However, the U.S. is still moving ahead with plans to double steel and aluminum tariffs to 50 per cent . According to a draft letter seen by Reuters, Washington is also pressing countries to submit revised trade offers by Wednesday to speed up negotiations before a five-week deadline.
Business Mayor
22-04-2025
- Business
- Business Mayor
As gold prices soar, Indians are exchanging old jewellery for new
A steep hike in gold prices has prompted Indian consumers to exchange old jewellery for new ones, with the World Gold Council (WGC) stating that 40–45 per cent of purchases now involve some form of exchange. 'Gold's steep climb and ongoing volatility are keeping many consumers on the sidelines, with demand for jewellery continuing to be limited to need-based purchases, particularly for weddings. There has been a noticeable shift in consumer behaviour in response to soaring prices, with more buyers opting to trade in old jewellery for new: anecdotal reports suggest that 40–45 per cent of purchases now involve some form of exchange,' the WGC report said. While festive buying has continued, it remains modest and localised, often tied to specific regions and communities. At the same time, the investment appeal of gold is gaining prominence. Anecdotal reports suggest that demand for bars and coins has been resilient, even at high price levels. 'The trend of festival and wedding-related purchases is likely to persist, supported by the safe-haven appeal of gold. But this may not offset the drop in discretionary purchases. Amid broader financial market turmoil and uncertainty, gold's role as a store of value is becoming more pronounced, reflecting a shift in consumer behaviour from consumption-driven purchases to wealth preservation,' said Kavita Chacko, research head India at WGC. The WGC report said that earnings reports from leading jewellery retailers for the January-March quarter point to a strong performance, with average revenue growth up 25–35 per cent year-on-year. This was largely fuelled by wedding-related demand, festive buying, and a noticeable consumer shift toward gold, both as an adornment and a store of value. While high gold prices tempered demand at the lower price points, the premium segments remained fairly resilient. Average transaction values reportedly rose by 15 per cent to 20 per cent year-on-year. Also, there was an uptick in old gold exchanges, which contributed to overall sales volumes. Corporate retailers continued their aggressive store expansion strategy, adding 10 to 30 new outlets during the quarter and reinforcing the growing presence of organised players in the jewellery sector. These large retailers remain upbeat about the outlook for the April-June quarter. Early indicators of bookings for regional festivals such as Akshaya Tritiya – a key period for gold purchases – point to strong consumer sentiment. Further underlining this bullish outlook, leading retailers plan to open between 150 and 200 new showrooms over the next 12 months, setting the stage for continued gains in market share and deeper penetration across regions.
Khaleej Times
22-04-2025
- Business
- Khaleej Times
Dubai: Gold prices jump over Dh11 per gram in 24 hours
Gold prices rally continued on Tuesday as the precious metal hit a new record high in Dubai and globally. The 24K variant of the yellow metal jumped to Dh416.5 per gram on Tuesday, gaining over Dh11 per gram in the past 24 hours. Similarly, 22K rose to Dh385.5 per gram on Tuesday, up over Dh10 per gram since Monday morning. Among the other variants, 21K and 18K were trading at Dh369.75 and Dh317.0 per gram. Spot gold was trading at $3,472.22 per ounce, up 4.74 per cent at 7.10am UAE time due to weakness in the US dollar and uncertainty over US-China trade tension. Many research and financial institutes have recently raised their forecasts for gold to $3,500 per ounce. Many of them predicted that it would touch $4,000 next year. But if the tariff uncertainty persists, the precious metal could possibly touch the $4,000 market this year. As reported by Khaleej Times earlier, analysts and gold jewellers in Dubai believe that the prices of the precious metal will stay on the higher side and are unlikely to see a major correction. 'A weaker US dollar and heightened geopolitical risk — including tariff-led fear and uncertainty — have been key drivers of gold's performance. Alongside this, strong gold ETF buying across most regions has been propelling gold higher... Investor interest is likely to strengthen as gold's appeal as a safe-haven asset and portfolio diversifier heightens amid global economic uncertainties and financial market volatility,' said Kavita Chacko, research for India at World Gold Council. Going forward, she said seasonal and wedding-related purchases may support gold demand this month and next.
Time of India
21-04-2025
- Business
- Time of India
As gold prices soar, Indians are exchanging old jewellery for new
A steep hike in gold prices has prompted Indian consumers to exchange old jewellery for new ones, with the World Gold Council (WGC) stating that 40–45% of purchases now involve some form of exchange. 'Gold's steep climb and ongoing volatility are keeping many consumers on the sidelines, with demand for jewellery continuing to be limited to need-based purchases, particularly for weddings. There has been a noticeable shift in consumer behaviour in response to soaring prices, with more buyers opting to trade in old jewellery for new: anecdotal reports suggest that 40–45% of purchases now involve some form of exchange,' the WGC report said. While festive buying has continued, it remains modest and localised, often tied to specific regions and communities. At the same time, the investment appeal of gold is gaining prominence. Anecdotal reports suggest that demand for bars and coins has been resilient, even at high price levels. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Mountain Gear for Extreme Conditions Trek Kit India Learn More 'The trend of festival and wedding-related purchases is likely to persist, supported by the safe-haven appeal of gold. But this may not offset the drop in discretionary purchases. Amid broader financial market turmoil and uncertainty, gold's role as a store of value is becoming more pronounced, reflecting a shift in consumer behaviour from consumption-driven purchases to wealth preservation,' said Kavita Chacko, research head India at WGC. The WGC report said that earnings reports from leading jewellery retailers for the January-March quarter point to a strong performance, with average revenue growth up 25–35% year-on-year. This was largely fuelled by wedding-related demand, festive buying, and a noticeable consumer shift toward gold, both as an adornment and a store of value. Live Events While high gold prices tempered demand at the lower price points, the premium segments remained fairly resilient. Average transaction values reportedly rose by 15% to 20% year-on-year. Also, there was an uptick in old gold exchanges , which contributed to overall sales volumes. Corporate retailers continued their aggressive store expansion strategy, adding 10 to 30 new outlets during the quarter and reinforcing the growing presence of organised players in the jewellery sector. These large retailers remain upbeat about the outlook for the April-June quarter. Early indicators of bookings for regional festivals such as Akshaya Tritiya – a key period for gold purchases – point to strong consumer sentiment. Further underlining this bullish outlook, leading retailers plan to open between 150 and 200 new showrooms over the next 12 months, setting the stage for continued gains in market share and deeper penetration across regions.
