Gold Prices Soar 60% to Rs 1.57 Lakh as Sales Decline 15% in Mumbai

Gold prices in Mumbai's spot market have skyrocketed to Rs 1.57 lakh per 10 grams. This includes 3% GST, as of Monday, a 60% increase from the same time last year.

The surge in gold prices has led to a decline in gold sales by around 15% year-on-year in volume terms.

India's bullion market is bracing for a temporary reprieve from the current moderation in demand. As the country's festive calendar hurtles towards its peak wedding season. Surendra Mehta, national secretary of the India Bullion &amp.

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Jewellers Association, notes that the country's gold prices have reached historic highs, resulting in decreased volume sales. Despite this, the overall outlook remains positive, with many consumers opting to exchange their existing gold jewellery for new, lighter pieces.

Mehta's assessment suggests that jewelers are banking on a temporary reprieve in demand. As the holiday season gives way to the peak wedding period. With weddings often coinciding with festive celebrations.

Retailers anticipate a surge in demand for versatile pieces that can seamlessly transition from special occasions to everyday wear.

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Kumar Jain, owner of Umedmal Tilokchand Zaveri, a 100-year-old outlet in Mumbai's Zaveri Bazaar, said demand for bullion in the form of coins and bars had picked up during this year's Ganesh Chaturthi, although volumes remained below last year's level. "Bullion sales in the form of coins and bars have shown traction this Ganesh Chaturthi, even though the volume is lesser than last year."

The Bureau of Indian Standards (BIS) has increased the hallmarking fee for gold articles just before the start of the festive season. The charge, which was earlier Rs 45 per gold article, has now been raised to Rs 75.

The fee for silver articles, however, remains unchanged at Rs 35.