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As gold prices near Rs 70,000 per 10gm; demand dips, imports down from 100 tons to 25 tons in March

Ziraat Times Team Report

Srinagar: As the price of pure gold is touching the Rs 70,000 per 10 gram level, customers across the country, including Jammu & Kashmir, are mostly staying away from buying for now.

In just a single month, the price in Mumbai’s Zaveri Bazaar is up by nearly 10 per cent to trade around Rs 68,500 per 10 gram. The Mumbai spot market has slipped into a heavy discount of $15-20 per ounce or Rs 400-550 per 10 gram since prices have risen sharply in a month.

Even gold imports, which were around 100 tonnes in February, fell sharply in March. Industry estimates hardly 25 tonnes were imported.

The gold price was Rs 28,430 per 10 gram a decade ago, up 141 per cent, giving a 9.2 per cent compounding annual return. This high return is gradually transforming market demand. Surendra Mehta, National Secretary, Indian Bullion and Jewellers Association, agreeing that customers are staying away from the market as of now, said, “The demand for jewellery has been gradually shifting to coins and bars and other gold investment avenues.”

Gold retailers in Srinagar told Ziraat Times that while the customers are mostly cautious from buying at this stage, demand is likely to pick up as marriage season starts across Kashmir.

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