Jewellery demand rises ahead of expected GST hike as gold prices moderate

India's jewellery demand has remained subdued this year because of the sharp increase in gold prices

With gold trading at a nearly two-month low, jewellery demand has jumped 20 per cent in the past couple of days, ahead of an expected goods and services tax (GST) hike. There is speculation that GST on gold may be increased from 3 per cent to 5 per cent following the GST Council meeting on December 18.

Domestic gold prices have declined 3.6 per cent since its peak of Rs 39,031/10g on September 4, taking cue from global prices. Standard gold on Tuesday traded at Rs 37,615/10g, the lowest in the past two months; it recovered marginally thereafter to close on