Gold price breaches Rs 43,000-mark in Ahmedabad

AHMEDABAD: Continuing its upward rally, gold prices breached the Rs 43,000-mark to touch a new record high and settle at Rs 43,205 per 10 gram in the Ahmedabad market on Thursday.
Pure gold price in Ahmedabad remained the second-highest in India, while the highest price being in the Hyderabad market, at Rs 43,250 per 10 gram.
The yellow metal prices rose in the international market, on account of growing concerns over the impact of the widespread coronavirus infection in China.
“Gold prices jumped by Rs 335 per 10 gram in the Ahmedabad market. Imports and exports of various countries including India is dependent on China and therefore, the extension of vacation in China due to the coronavirus infection would have an impact on global economy. Gold prices have shot up as a result of this in the international market,” said Haresh Acharya, director, India Bullion and Jewellers' Association (IBJA).
Overall gold prices have remained above the Rs 42,000-mark as a result of which the demand has showed a significant deceleration. “Gold jewellery demand has significantly declined due to high prices of gold. There was no relief provided to jewellers even during the Union Budget in the form of cut on basic customs duty. If prices continue to remain high, sales of jewellery as well as bullion is expected to decline and will impact employment in the sector,” said Acharya.
Despite the ongoing wedding season, high gold prices pushed gold imports in Gujarat to a five-month low at 0.92 metric tonne (MT).
“Due to the Kamurta period, which is often considered inauspicious for gold purchases, coupled with high prices, gold imports plunged significantly low in January,” said a city-based jeweller.
“More than 70% transactions are being made through exchange of old gold. The ongoing wedding season is keeping sales upbeat as of now but if the prices continue to remain high,it may deter customers from purchase,” said Manoj Soni, member, Jewellers’ Association of Ahmedabad (JAA).