Gold touched an all-time high of ₹57,000 per 10 gm on Tuesday, which is ₹800 more than in August 2020 when the rate had peaked at ₹56,200 per 10 gm during the covid pandemic. Jewellers said only those who have marriages in the family are buying gold now and the volume of gold jewellery consumption has dropped by 25%.
Prices of gold have rallied 14% since Diwali last year. The sudden surge in prices has resulted in plain gold jewellery for gifting purposes taking a back seat with people preferring diamond jewellery as gold content is less. Industry executives said there was an immediate need to reduce import duty on gold, which is now 15%, in the upcoming budget for the industry to survive.