Vaulting price robs festive sheen of gold in Hyderabad

Hyderabad: With Dhanteras approaching, the rising gold prices have dampened business for gold traders in the city. Currently, the price of 22-carat gold stands at Rs 73,360 for 10 grams.

The hustle and bustle that used to be witnessed during every Diwali is missing this year. The lanes and by lanes of jewellery shops at Secunderabad, Begum Bazar, Abids, Somajiguda, and Basheerabad have worn a deserted look.

Members of the Telangana Gold and Silver Jewellery Association have reported a 30 per cent decline in sales, attributing it to the rising prices of gold and silver. Additionally, due to the price hike, customers are opting for lightweight gold jewellery over heavier pieces. To attract customers, several jewellery shops have introduced options such as exchanging old jewellery for new, given the high gold prices.

Recent data shows that last year during the same period, pure gold was sold at around Rs 61,500. This year, the price of 10 grams of 22-carat gold has reached Rs 73,360. Meanwhile, the price of 24-carat gold has surged past Rs 81,250, compared to last month's range of Rs 72,000 to Rs 73,500. Similarly, silver is currently being sold at Rs 1,12,000 per kg.

"There is a tradition of purchasing precious metals during the Diwali season, but this year we've seen a decline in footfall. Every year, October through December used to be bustling with customers, but this year, only a few are visiting our shop. The wedding season is approaching, yet sales remain low. During Diwali, we typically experience impressive sales, but the market is very quiet this year, with just two days left until the festival and few buyers.

We are hoping that gold prices will drop slightly to around Rs 76,000 for 10 grams and silver to Rs 90,000 per kg by the end of December, following the US Presidential elections," said Ashok Jain, president of the Pot Market Jewellery Association.

Prakash Patil, vice president of the National Gold, Silver Refiners, and Jewellers Association, stated, "Last year, there was a drop in sales due to the election code, and this year, the sudden price increase has had a drastic impact on sales during the festive season."

"Most jewellery shops source their work from artisans in the Old City, where we receive the metal from the shop and then work on it. However, due to the price hike, we've hardly received any orders," said Amarnath Ghosh, a goldsmith.