Experts see near-term correction from profit-booking, but long-term bullishness intact
Silver physical demand is robust while gold jewellers targeting Gen Z with influencer collaborations
The US tariff hike on gems and jewellery exports from India has halted shipments, slashed market share and may lead to 1.25 lakh job losses in major export hubs
But despite the US hit, the Iran-Israel war is still going on, and Iran has threatened to attack US military installations in the Gulf
Demand for the yellow metal is ebbing as prices continue to soar
Exports will be badly hit in the next couple of months until the cost impact is analysed by US consumers and Indian exporters, said industry players
This is in tandem with international prices, which hit record highs and crossed $3,000 an ounce on Friday, say industry players. One ounce is approximately 28.35 gm
Consequent to high gold prices, the domestic jewellery industry also faced many challenges during the recently concluded Samvat
Conservative buyers gravitated toward Shagun coins, while younger ones chose lightweight or 18k jewellery
Flare-up in West Asia, US elections, further rate cuts by Fed may keep fuelling bullish trend, say experts
Diamond industry to also benefit from change in safe harbour rules
OPEC countries have enough oil which can potentially cap any sharp price increases
The gold price was Rs 28,430 per 10 gram a decade ago, up 141 per cent, giving a 9.2 per cent compounding annual return
What is worth observing for the Indian market is that since the last nine years, gold investors have made money each year, while in silver, gains have been consistent only in the last five years
Most base metals, except tin, have ended lower in the last two years
The government launched the first SGB in November 2015, and the first two issues have matured giving significantly high tax-free returns to investors
Indian cryptocurrency exchanges hope for a revival in sentiment as Bitcoin price is up nearly 50% in a month to over $66,000
High prices and previous year's base weighed on the precious metal
Some refineries stayed away from giving an undertaking to govt. for not importing unrefined gold from LDCs
The reason for the good response in FY21 and FY22 was because of the lockdown and as the jewellery stores were not open while SGB buying was possible through net banking