The increasing global crisis has made an impact on gold price in the country, making those dealing in gold business even more vulnerable.
Gold business that was already facing a heat from the past many months has taken a further dip after the price of gold touched Rs 29,000 from Rs 28,000 per 10g last week.
Even the Raksha Bandhan celebrations could not provide any relief to jewellers in the city.
In 2013, gold prices reached Rs 32,000 per 10g, which made the Reserve Bank to impose restrictions on the gold import in the country. Since January, prices of gold decreased, but due to war-like situation arising in the middle-east, including Iraq and Gaza, the prices again shot up instantly during this week.
Ludhiana Jewellers Association president Anand Sikri said the global crisis in different countries was one of the reasons behind increased gold prices, as the entity was linked directly to the global market and not the domestic one.
Residents who were already reluctant to buy gold have stopped purchasing it in the wake of increasing prices, he added.
There are two main gold markets in the city, one at Fountain Chowk and other near Chaura Bazaar with at least 3,000 retail outlets of gold in the city. City jewellers had pinned expectation on the Modi government regarding reduction in import duty. At present, the custom duty on gold import is 10 percent that increases the cost excessively.
The Reserve Bank that had in the past imposed restriction on the gold import had some time ago provided relief to those dealing in gold by allowing import on condition that one fifth of the imported gold has to be exported.
Tribhuvan Thapar, who is a gold merchant, said there were hopes with the festive season but the crisis in different countries could lead to no respite for those dealing in gold.
“For the past many years, the business of gold has seen a downslide. Even during the marriage season the business is not as it was a decade ago” said Thapar.