Srinagar, Apr 24: Gold dealers in Jammu and Kashmir are struggling to get buyers as the rates of the yellow metal have been increasing since the escalation of tension between Iran and Israel.
As per news agency—Kashmir News Observer (KNO), the latest spike in gold prices came after geopolitical tensions between Iran and Israel, with both nations engaging in aggressive rhetoric and military posturing.
Such geopolitical uncertainty often triggers a flight to safety among investors, driving up the demand for assets like gold, traditionally considered a hedge against political instability and economic turmoil.
In response to the soaring prices, gold traders have witnessed a noticeable shift in consumer behaviour. Instead of flocking to purchase gold jewellery during the ongoing wedding season, gold dealers rarely get any customers nowadays.
As per the gold dealers, the rate for 22 karat has increased to Rs 6,660 per gram. For 24 karat (999 gold) pure gold, the price stands at Rs 7,216 per gram.
Mohammad Yusuf Zargar, a gold dealer said they have been struggling to get customers for more than a month now after tension escalated between Iran and Israel.
“The gold rate skyrocketed. We have been only getting the sellers while there is very less turn to buy the gold. Last week, the gold pound touched Rs 65000. Though the rates have been now coming down still it is unaffordable for the middle class. As such dealers have ceased to sell the pound as of now,” he said.
The gold dealers said many investors are opting to liquidate their gold holdings to capitalize on the booming real estate market.
“We’ve seen a decline in foot traffic and sales of gold jewellery. People are selling their gold to invest in property, believing it offers better returns and stability in uncertain times. Almost 9- percent of the sellers said they are selling gold to invest in real estate,” said Abdul Rouf, another gold dealer.
As the wedding season in Kashmir approaches, gold dealers and jewellers claim that the soaring prices are deterring prospective buyers. “Since April, marriage and other wedding related functions start in the valley. People struggle to buy the jewellery as its cost has increased for the last one month,” Rouf said.
—(KNO)
