- Title: Selling pressure grips Indian jewellers amid subdued demand of glittering gold
- Date: 20th March 2025
- Summary: RAJKOT, GUJARAT, INDIA (MARCH 19, 2025) (REUTERS) VARIOUS OF EXTERIOR OF LOCAL JEWELLERY SHOPS/TRAFFIC MOVING ON ROAD EXTERIOR OF RADHIKA JEWELLERS SURAT, GUJARAT, INDIA (MARCH 19, 2025) (REUTERS) VARIOUS OF GOLD JEWELLERY ON DISPLAY ON MANNEQUINS INTERIOR OF GOLD JEWELLERY SHOP VARIOUS OF GOLD JEWELLERY ON DISPLAY VARIOUS OF CUSTOMERS BUYING GOLD JEWELLERY WOMAN HOLDING G
- Embargoed:
- Keywords: India U.S. tariffs business buyers diamond exchange export gems global gold prices hike import inflation investment jewellery precious retail return sellers silver
- Location: SURAT, RAJKOT, GUJARAT, INDIA
- City: SURAT, RAJKOT, GUJARAT, INDIA
- Country: India
- Topics: Asia / Pacific,Commodities Markets,Economic Events
- Reuters ID: LVA001M10EXCF
- Aspect Ratio: 16:9
- Story Text: As domestic gold prices reach new highs in India, jewellers are grappling with intense selling pressure. Customers, rather than shopping for new pieces, are flooding stores to cash in their gold, effectively becoming sellers instead of buyers.
Gold climbed to an all-time high on Thursday (March 20) as the U.S. Federal Reserve signalled two possible interest rate cuts this year, adding to the precious metal's appeal amid ongoing geopolitical and economic tensions.
Domestic gold prices in India have risen more than 32% since it cut import duties in July, to a record high of 89,014 rupees per 10 grams.
"There is a trade war that has been going on right now so, the possibility of differences in the American and Indian tariffs, and the increased tariff rates in other countries as well, have resulted in a situation where jewellers are facing a loss", Indian Diamond Institute Chairman, Dinesh Navadiya, said.
In India, the second largest consumer of gold, the wedding season is in full swing but jewellers nationwide are experiencing less than half their usual customer traffic, dealers say.
"The prices are expensive but we have to buy gold jewellery. It is the wedding season right now and many people have come to buy gold jewellery. Everyone will sell their previously owned gold jewellery to be able to buy new ones", a customer from western Rajkot city said.
Jewellery makes up nearly 70% of India's total gold demand.
(Production Credits: Ashok Solanki, Nitesh Mistry, Pradeep Bhatia, Aanchal Chandra, Sunil Kataria) - Copyright Holder: REUTERS
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