On Tuesday, silver prices peaked at Rs 92,444 per kg in Mumbai’s Zaveri Bazaar, Asia’s largest precious metal hub, marking a 5.67% increase from Friday.Similarly, gold prices are approaching the Rs 75,000 per 10 gm mark, with the current price hovering around Rs 74,222 per 10 gm on Tuesday. The jewellery market in Mumbai remained closed on Monday due to the general election.
According to an ET report by Sutanuka Ghosal, representatives from the India Bullion & Jewellers Association (IBJA), a leading trade body, held a meeting with BIS officials on Tuesday to address the issue of hallmarking and HUID numbers for 9-carat gold.
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Surendra Mehta, the national secretary of IBJA, was quoted as saying, “Prices are surging northwards and consumers are feeling the pinch of it. Keeping that in mind, we met the officials today to allow hallmarking for 9-carat jewellery.” The Reserve Bank of India recognizes IBJA’s when determining the price of sovereign gold bonds.
The cost of nine-carat gold is currently Rs 27,740 per 10 gm, with an additional 3% GST applied on top of this price. If hallmarking is permitted for 9-carat gold, consumers will have the opportunity to purchase larger pieces of jewellery while staying within their budget constraints.
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According to Anuj Gupta, Head of Commodity & Currency at HDFC Securities, “In recent weeks, silver has seen strong bullish momentum, driven by growing anticipation of a rate cut in September. Furthermore, following a period of consolidation in industrial metals, there has been a notable uptrend in recent times as global manufacturing activity has improved. This has also contributed to the upward movement of silver prices.”
Gupta added, “Long-term, we believe silver has the potential to cross the Rs 110,000 per kg level.”
Over the past five months, the price of gold has risen by nearly 17%. The rally commenced in March 2024, fueled by geopolitical tensions, expectations of a rate cut by the US Federal Reserve, and a surge in Chinese demand for the precious metal. Gupta expressed his outlook, saying, “Despite the higher gold price, we believe there is room for further upside, with prices expected to hit Rs 80,000-85,000 per 10 gm by Akshaya Tritiya next year.”
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Mehta from IBJA points out that the high price of gold is negatively impacting demand, stating, “The regular buyers are staying away. Only wedding-driven demand is there now. Pan-India, gold demand has fallen by 20%.”
