Global benchmark spot gold prices held near a nine-year peak, close to the $1,900 an ounce level, on safe-haven investment demand, while silver eyed its best week in over three decades
Like most asset classes, gold is being affected by the unprecedented economic and financial market conditions in play around the globe, with inputs from analyst and consultant with WGC, Trevor Keel WGC decodes the effect of COVID-19 on gold prices
ICRA expects gold jewellery demand to be subdued in FY2020 with expected volume de-growth of 6-8% on the back of elevated gold prices and weak consumer demand
Easy monetary policy and low interest rates are here to stay and that will support gold prices in the long term, but investors need to be a little patient, according to one market analyst
Jewellers believe that if only gold prices had been stable, then it would have increased consumer confidence and could have led to higher sales
The gem and jewellery industry is already in doldrums as the domestic demand is almost wiped out due to high gold prices and back-breaking import duty of 12.50 per cent on gold, said a leading jeweller
Among listed jewellery and ornament manufacturing companies, PC Jeweller was the top performer, followed by Tara Jewels, Tribhovandas Bhimji Zaveri, Titan and Thangamayil Jewellery
"We are dealing with higher import duty, erratic monsoon, slowing economic growth and then very volatile and all-time high gold prices and the demand really seems to be taking a backseat amongst all of this," says PR Somasundaram, MD-India at World Gold Council
Typically, the demand for gold reflects the expectations about the future, the prices of the precious metal tends to rise amid uncertain economic situations or political upheaval
Gold prices have already rallied 19% in 2019 due to worries over global economic growth from a prolonged US-China trade war, geopolitical tensions on Iran and US Federal Reserve rate jitters
According to Angel Commodities, last week, spot gold prices rose by 0.4 percent over rising global uncertainties coupled with weaker U.S. Dollar
Spot gold increased by 0.2 per cent to $1,286.89 an ounce on Monday, while rates at the souks and other retail outlets increased by more than Dh 1
Lower gold prices saw retail investors take refuge in bars and coins, while jewellery purchases increased in India, China and across South-East Asia.
Gold rules the sales due to continued weak gold prices boost the gold bars/coins and jewellery sales on Akshay Tritiya day. Diamonds, too, find buyers on the auspicious day.