E-Paper
Gold, silver plunge jolts Ludhiana market
The sharp fall has erased significant market value with gold exchange-traded funds declining by up to 16% and several silver funds sliding by around 15%
Gold and silver market in Ludhiana has been jolted by a steep price correction that followed last month’s surge, wiping out gains, triggering margin calls and leaving jewellers grappling with weak demand, falling margins and growing panic.
The sharp fall has erased significant market value with gold exchange-traded funds declining by up to 16% and several silver funds sliding by around 15%. Market participants said the sudden correction forced high-risk investors to liquidate positions, accelerating the decline.
In the domestic market, gold prices fell by around ₹9,050 per 10 grams and silver by nearly ₹50,000 per kilogram as of 8 pm on Monday, making gold jewellery considerably cheaper than it was just a few weeks ago. However, the price correction has failed to revive demand in Ludhiana as buyers remain wary of further volatility.
Mala Dhanda, owner of Dhanda Jewellers, said shifting global power dynamics and US influence over financial markets were directly impacting gold prices.
“The market is crashing rapidly, and global developments are driving this fall,” she said.
Shiv Dhair, executive member of the Ludhiana Jewellers Association, said customer sentiment had turned extremely cautious. “People are panicking whether prices go up or come down. Because of the crash, buyers are waiting for prices to fall further,” he said, adding that middle and upper-middle income customers were particularly hesitant.
Association general secretary Manoj Dhanda warned that prices were likely to remain volatile, with global events and geopolitical tensions capable of triggering fresh swings.
To cope with weak demand, jewellers are cutting labour and making charges to clear inventory.
