Gold price hit a six month high at Rs 30,000 per 10 gram as the Central government increased customs duty on gold from 8% to 10% resulting in disappointment among people.
The price of silver too increased sharply.
Jewellery shops witnessed a dip in the number of buyers on Wednesday.
Jewellery shop owners feel that unstable prices and not the price is responsible for the dip in customers.
The price rise comes at a time when the gold and silver prices were expected to decline further.
It was expected that the gold price might touch Rs 22,000/10 gram.
Agrawal Jewellers owner Shashi Agrawal said, “Customers have purchased gold even when the cost was Rs 33,000/10 gm. So, hike in price is not an issue. The reason is instability. The fluctuation in price of gold has created confusion in the mind of people. After stability is achieved, the sale of gold, silver and platinum ornaments will increase irrespective of rates. Now, purchase of precious metals has become a risky bet for people.”
The buyers have been apprehensive due to the constant fluctuation in the price of gold.
Customers are waiting for the prices to dip further.
Parmeet Kaur (42), resident of Awadhpuri, said, “The rates of gold and silver jewellery have been fluctuating over the last six months. I am confused, should I purchase jewellery or not. When the cost had reached Rs 26,000 per 10 gm in April, people and economists were discussing that it would decrease further.
Now, the price has again touched Rs 30,000 per 10 gm. Besides increasing custom duty, the government should take some steps to stabilise the market.
Another customer from Idgah Hills, Mubashshira Khan (46) said, “I have stopped thinking about purchasing gold and silver ornaments. There is a great confusion in the market.”
New Market Sarafa association, vice president Manoj Agrawal said, “We are not receiving good response from the customers not only because of rise in prices but also because of instability in the market. Still, there is a perception in the market that the price will drop again but if the price rises, customers will suffer loss.”