Gold Prices Rise, Buyers Retreat: Jewellery Volumes May Hit 10-Year Low

Summary

India's organised gold jewellery retail sector is expected to see sales volume decline by thirteen to fifteen percent this fiscal year, due to high gold prices and recent policy measures to curb imports. This decline is attributed to the central government's decision to more than double the customs duty on gold to fifteen percent, which will be a significant deterrent to demand for gold jewellery. As a result, the sector's sales volume may hit its lowest level in a decade, with volumes projected to reach six hundred and twenty to six hundred and forty tonnes this fiscal year.