Kolkata: Gold markets are buzzing again after a lull during the month-long inauspicious Kharmash period, with consumers rushing to buy the yellow metal amid rising international prices and speculation that the upcoming union budget may reverse last year's import duty cut.
Footfalls in Mumbai's Zaveri Bazar, the largest gold market in the country, surged by 60-70% year on year since the Kharmash period ended on Tuesday, traders said. This despite prices of the yellow metal increasing by ₹1,900 per 10 gm over the last fortnight. On Thursday, gold was trading at ₹78,718 per 10 gm in the physical market.
"On Wednesday and Thursday, we witnessed a 15% hike in demand compared to year-to-date," said Kumar Jain, owner of Zaveri Bazaar-based Umedmal Tilakchand Zaveri. "People were waiting for the inauspicious period to be over and they have started visiting the stores now."
Suvankar Sen, managing director of Senco Gold & Diamonds, said the Kolkata-based gold jeweller saw demand pick up 15% since Wednesday after a significant slowdown for a month. "There are a lot of weddings lined up in th ..
There is speculation in the market that the government may increase import duty on gold as a measure to tackle the trade deficit. India's trade deficit stood at $21.94 billion in December, down from $32.84 billion in November but higher than $18.76 billion in December 2023. The government had reduced the import duty on gold to 6% from 15% in July last year when the union budget was tabled.
Source Name : Economic Times