Last Updated :
13 November 2009 at 15:30 IST
Gold above Rs 17K leaves India buyers stunned
RAJKOT/AHMEDABAD (Commodity Online): November 12 was the red letter day in the bullion markets in Indian state of Gujarat with the yellow metal crossing the record Rs 17,000 per 10 gm mark following increased buying activity by stockists and jewelers expecting higher sales during the wedding season.
Gold has never touched Rs 17,000 per 10 gm in Gujarat till now and this rise in prices has left buyers and traders equally surprised.
Jewellers claimed that gold prices soared to Rs Rs17,075 per 10 gram in Gujarat's biggest city Ahmedabad. In global markets, gold touched $1,120 an ounce on Thursday.
The yellow metal has been moving consistently higher, driven by strong international trends and supported by local buying interest spurred by the marriage season.
The 99.9% pure gold closed at Rs17,160 per 10 gm, while 99.5% pure gold was quoted at Rs17,075 per 10 gm in Ahmedabad on Thursday.
However, jewelers said thee was hardly any customer at shops as the high prices kept them away from buying the metal.
Meanwhile, artisans in the jewellery making field are fearing that they will lose their jobs because of a fall in demand for gold jewellery due to the high prices.
Around 50,000 jewellery makers in Rajkot are fearing job loss as demand for gold jewellery has nosedived.
Rajkot is known for specially designed gold jewellery and job works.
A few years ago, Rajkot used to house one lakh gold jewellery makers. Consumers are now buying pure gold. The demand for gold jewellery has come down following soaring prices of the commodity. As a result, gold jewellery workers have no work at present. However, the workers will get work once the prices are stabilised.
Gold price in Rajkot on Thursday reached Rs 17,100 per 10 gm. Gold jewellery workers earn Rs 15,000 to Rs 30,000 per month in a normal season but their earnings have reduced currently.
Rajkot is witnessing a turnnover of 15 to 20 kg gold now, which is 30 to 40 per cent lower than normal working season.
NCDEX WHEATDELHIJUN12 20 June 2012
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