In India, tracking the global gold prices which have scaled to six-year peak levels have gone to levels not seen before owing to the indirect tax element i.e. GST of 3%. 24 K gold is today priced at Rs. 34,210 per 10 gm with a change of Rs. 10.
In the international markets, keeping in view the weaker dollar and now the escalating US-Iran tensions has again bring a sheen to the safe-haven appeal of the metal.
Nonetheless, in the Indian context, because of the sharp movement in gold's price on the higher side, consumers have been keeping away from the buying plan even though to boost sentiment in the metal, dealers have been reported to offer 1% discount.
Gold price movement so far
Global geo-political situation and gloomy economic outlook has revived the metal after few years time, and in the calendar year 2019 itself, the precious metal has scaled in price by a good 10% so far.
And whilst the buying in gold has been declining, sales of scrap gold jewellery is on the price seeking the higher market price.
Lull period for gold jewellers and traders
The precious metal has seen resurgence after a period of some 3 years and the bulls in the metal is likely to continue given the landscape wherein central banks across the world have been resorting to accumulating gold. So, for some time now, the businessmen in the sector will have to be satisfied with lower margins on their sales.