The high price of gold also has its negative aspects, reports the raw material analyst from Commerzbank, Carsten Fritsch.
There is a risk of more pronounced price correction
“Swiss gold exports to more demand Asian countries, which fell to almost zero in February, had already pointed out this. India’s news provides greater confirmation in this regard. According to this, private households there are choosing to sell gold jewels and gold coins to take advantage of record prices.”
“These reached almost 90,000 rupees for 10 grams last week. Since the import tax was reduced in July 2024, the local price of gold in India has increased by more than 32%. If the current pricing level persists, the president of the Association of Jewelers and Precious Metals of India expects the demand for gold in India to fall more than 30% this year.”
“According to the operators, the current wedding season is not even generating half of the usual traffic of customers for jewelers. These warning signs should not be ignored, since they highlight the high dependence on the price of the gold of investors. If the interest of investors decreases, there is a risk of more pronounced prices correction.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
