Gold Price Today / Rising gold prices have increased people's problems, demand has decreased by 80%

Gold Price Today: In recent times, gold prices have been witnessing a steady increase, which has had a profound effect on the general public and the jewelry industry. This surge in gold prices has come due to the ongoing instability and economic uncertainties in the global market. Gold prices have increased by more than 6 per cent in the last one month. The price of 10 grams of gold on the Multi Commodity Exchange has increased by Rs 459 to Rs 85,146. Silver is also following the same trend and has increased by Rs 46 to Rs 95,632 per kg.

Effect of inflation: Customer demand decreased

Due to rising gold prices, the jewelry market has seen a sharp decline in demand. According to the India Bullion and Jewelers Association, sales in the jewelry industry have declined by about 80 per cent. Despite the wedding season, customers are refraining from buying gold due to expensive prices. To handle the situation, Chinese dealers have started offering discounts to attract their customers. However, no such trend is being seen in the Indian market yet.

Impact of international market

Gold prices continue to fluctuate in the international market as well. Gold prices fell by more than 1% recently due to profit booking. Pressure by US President Donald Trump to increase tariffs and fears of a global trade war have affected gold prices. Spot gold fell 1.5% to $2,883.80 an ounce, although it managed to maintain a 0.7% gain on a weekly basis.

Customers' dilemma

Amid rising prices, customers are confused about making purchases. According to jewelers, many customers want to buy gold for weddings and other occasions, but they are currently holding back due to high prices. They are constantly asking when gold prices will fall and what will be the right time to buy.

Gold consumption and trade deficit in India

According to the World Gold Council, India's jewelry consumption in 2024 was 563.4 metric tons, which was more than China's consumption of 511.4 metric tons. In just 45 days this year, gold prices have seen an increase of more than 10%. Due to this, India's trade deficit has also been affected. The country's trade loss in January 2024 was $20.88 billion, which was $21.94 billion in December 2024.

Possible reasons for the decline

Gold prices have risen due to global economic uncertainty and rising inflation. However, with the end of the festive and wedding season, there is a slight decline in demand. Due to the high price rise, customers are avoiding shopping, which is also expected to reduce the trade deficit.

Conclusion

The continuous increase in gold prices has posed new challenges to the general public and jewelry businessmen. This may be a good opportunity for investors, but expensive gold is causing trouble for common customers. Further rise or fall in prices in the coming days will depend on the global economic situation and market demand.