BENGALURU: The price of the yellow metal is likely to touch a record high of Rs 5,000 per gram in the coming days, bumped up by the coronavirus outbreak which has hit the economy. In fact, gold prices are expected to go even higher, experts say. Karnataka has around 25,500 jewellers, with close to 8,500 based in Bengaluru. Over 5 lakh people work in the sector, including goldsmiths and other workers, and are facing hardship as their employers have closed businesses due to the lockdown.

On Tuesday, gold prices were at Rs 4,800 per gram. According to TA Sharavana, president of Karnataka Jewellers’ Association, the fall in the stock market and bank interest rates have caused gold prices to rise. “This trend will continue for some time. In the next few weeks, it will cross Rs 5,000 per gram,’’ he told TNIE. The impact of the lockdown could also hit gold purchases on the occasion of Akshaya Tritiya, which falls on April 26 this year. Many people, especially from Old Mysuru region, buy gold on that day, believing that whatever they do on that day will increase manifold (Akshaya).

“Although shops are closed, many people still want to buy gold on Akshaya Tritiya. They are booking gold coins online and requesting us to make the bill for April 26. We will deliver the gold coins after the lockdown is lifted,’’ Sharavana said. Recently, he distributed groceries to some workers in the jewellery business. KP Nanjundi of Lakshmi Gold Palace said that business is likely to be down by 80 per cent during Akshaya Tritiya this year.

“At this juncture, people don’t feel that gold is a priority. They will not step out to buy gold for at least the next six months. Prices will increase drastically and cross Rs 5,000 per gram. If there was no lockdown, this was the season to buy gold -- Akshaya Tritiya and the wedding season. But now gold is the last option and priority,’’ he said.