The cost of gold, which saw a momentary dip, was back on an upward trend on Saturday. The price of the yellow metal is all set to hit a new high after three years.
One gram of 22-carat gold was priced at Rs. 2,924 on Saturday, which was higher by Rs. 21 than the previous day’s. Though there have been fluctuations in the rate for the past one week, it has not attracted people to buy the precious metal.
Kavitha R., a resident of Perambur who purchases gold coins frequently as a small investment, has refrained from buying for the past one month.
Jewellers say the number of footfall has remained low since the price started escalating for a month now.
L.K.S. Syed Ahmed, chief advisor, Tamil Nadu Jewellers’ Federation, said there has been no demand for new jewels in the city even though it is festival season. “We are only having 50 per cent of the usual sales. It was in June 2013 that the price had touched nearly Rs. 3,000 per gram of 22-carat gold,” he says.
Members of various jewellers’ associations said the prices might not dip at least for a fortnight. N. Ananthapadmanabhan, regional chairman, All India Gems and Jewellery Trade Federation, cited U.K.’s decision to leave European Union as the reason for the spiralling price for the past week. “The sales have dipped by 40 per cent in the city and the same trend is expected to continue in July too,” he said.
