Srinagar, June 30: A decline in gold prices has brought relief to buyers across Kashmir, especially families purchasing jewellery for weddings as the Valley heads into peak marriage season.
The dip has drawn customers back to jewellery markets after months of record-high rates that had dampened demand. Many buyers who had postponed purchases due to soaring prices are now making bookings, traders said.
President, Gold Association Kashmir, Bashir Ahmad told GNS that it would be premature to predict the future direction of gold prices amid continued volatility in global markets. He said 18-carat gold is currently selling at around ₹12,400 per gram in Srinagar, while 24-carat gold is priced at approximately ₹14,700 per gram.
Market experts remain divided on the trend. Some believe the recent correction offers a favourable window for consumers, while others advised caution, citing global economic uncertainties and geopolitical developments. They said it is difficult to forecast whether prices will continue to fall or rebound.
Globally, gold prices edged lower on Tuesday and were headed for their steepest quarterly decline since 2013. The slide is largely attributed to expectations that the U.S. Federal Reserve will keep interest rates higher for longer to contain inflation.
Analysts noted that higher rates reduce the appeal of gold, a non-yielding asset, as investors shift to interest-bearing investments, putting downward pressure on bullion.
Financial markets are now watching upcoming U.S. economic data, including employment figures, for cues on the Fed’s policy outlook, which is expected to influence gold’s trajectory.
Traders cautioned that the gold market remains sensitive to global economic developments, geopolitical tensions, and central bank decisions. They advised buyers to monitor trends closely as prices are likely to stay volatile in the coming weeks.
For now, the price drop has come as a breather for consumers across Kashmir making wedding-related purchases.(GNS)
