Ahmedabad: Gold prices climbed to Rs 1.7 lakh per 10g in Ahmedabad on Monday, extending an upward trend that made the precious metal more expensive ahead of the festive and wedding season. Its prices have been hovering around Rs 1.35-1.5 lakh per 10g for the past 3-4 months.“The US Treasury’s decision to buy back longer-duration bonds has pushed long-term yields lower, improving the appeal of gold, which does not generate interest. Markets are also watching developments around stalled US-Iran talks. Treasury secretary Scott Bessent is expected to announce new sanctions against Iran, adding to demand for gold as safe-haven assets,” said Haresh Acharya, director, India Bullion and Jewellers’ Association (IBJA).Jewellers said the rise has been driven largely by international gold prices, expectations around US interest rates and continued geopolitical uncertainty. However, they expressed concerns over demand in the coming months.For Ahmedabad’s jewellery market, however, the sustained price rise was creating a fresh challenge. Jewellers typically see stronger enquiries ahead of Navratri, Dussehra and Diwali, but consumers are becoming more cautious as the cost of gold rises.“Young buyers are already opting for 9 carat and 14 carat jewellery. Even silver jewellery has taken off. Otherwise, demand is cold and people tend to buy lightweight jewellery and that too at a fixed budget in exchange,” said Jigar Soni, president, Jewellers’ Association of Ahmedabad (JAA).“Customers are still buying, but the ticket size is under pressure. They are exchanging old jewellery or postponing discretionary purchases,” said another city-based jeweller.The impact could be more pronounced if household cash flows remain under pressure. Lower inward remittances could also weigh on spending by families that traditionally use remittances for jewellery purchases during the festive and wedding season, Acharya said.
