Gold prices rose by 1% on Tuesday due to a weakening dollar after US President Trump's policy announcements. This led to a pause in gold purchases by Indian consumers. The industry is cautious as further dollar weakening could push prices higher. ...
Kolkata: Gold prices rose by 1% on Tuesday following a weakening of the dollar after US President Donald Trump's policy announcements, prompting Indian consumers to pause purchases of the yellow metal. The gold industry is concerned that the upward price momentum may continue this week if the dollar weakens further, denting sales.
Gold was trading in the physical market at ₹79,650 per 10 gm during the day compared to ₹78,800 per 10 gm on Monday. A weak dollar tends to make purchasing gold attractive, especially for foreign buyers, pushing prices higher.
"Walk-ins are happening and customers are also choosing jewellery items. But they say they will place orders after gold prices stabilise," said Rajiv Popley, director of Mumbai-based jeweller Popley & Sons. "The momentum gathered after the end of Kharmash (inauspicious period from December 15 to January 14) has lost some steam now."
Jewellers will be keenly monitoring the movement of gold in the near term until further clarity emerges on Trump's tariff policies. Varghese Alukkas, managing director of Jos Alukkas, which has 50 outlets across South India said, "We were expecting the dollar to strengthen after Trump takes over the White House. On the contrary, the dollar has weakened, making gold costlier."
"Jewellery manufacturers and retailers do not know what to do now. Even customers are not coming to buy new gold. They are just exchanging their old gold only for new jewellery items. There is uncertainty in the market now," he said.
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Soon after taking charge on Monday, Trump indicated staggered and gradual import tariffs instead of a one-time tariff plan anticipated previously. Softening of the dollar gave strength to the yellow metal.
