Since the budget announcement, gold prices have generally decreased, though there have been occasional increases. As of Friday, one gram of 22-carat gold was priced at Rs6,425 in Tiruchi, compared to Rs7,009 for 24-carat gold. Prices have seen a notable drop from Rs6,825 per gram (22-carat) on July 22, just before the budget was presented, to around Rs6,450 currently.

The decrease in gold prices has spurred a significant increase in sales within the bullion market. Despite the Tamil month of Aadi typically being a slower season for jewellery trade, the reduced prices have encouraged consumers to purchase gold and silver, taking advantage of the drop of Rs450 per gram.

B. Saravanan, Secretary of the Tiruchi Jewellery Owners’ Association, noted a marked increase in sales following the duty cut, with many traders reporting robust business. Tiruchi, home to approximately 350 small to medium-sized jewellery shops and 15 major showrooms, has seen daily gold trade volumes rise from about seven to eight tonnes to approximately 10 tonnes.

Saravanan anticipates continued strong sales, especially after the Aadi Perukku festival, suggesting that the positive trend in jewellery business will persist through the coming weeks.