Key Points
India's gold obsession is starting to pinch with prices of the precious metal continuing to spiral and touching a record at nearly 67,000 for 10 grams..
Gold and silver prices rallied on Thursday after the US Federal Reserve maintained that it would cut interest rates three times in 2024..
"If there is a sudden spike in gold prices, consumers tend to pause for some time, but are back to shop once prices stabilise, especially for wedding jewellery as it cannot be postponed," said Ramesh Kalyanaraman, executive director at the jewellery retailer...
For discretionary purchases of gold, consumers often exchange gold during periods of high prices, he said, adding while momentum is strong this quarter, there could be minor disruptions due to campaigning and general elections during April-June...
"Demand is unlikely to see a notable uptick in the next couple of months even should prices moderate as the country's impending general elections will see the movement of gold and cash closely monitored," said Kavita Chacko, research head, India, at WGC..
