Gold price soars to lifetime high, consumers raise concerns

The price of gold has skyrocketed to reach its lifetime high after Union Finance Minister Nirmala Sitharaman announced a hike in customs duty on the articles made from gold and silver bars during her budget speech on Wednesday. 

The cost of 24-carat gold has reached almost Rs 61000 per 10 grams. Meanwhile, consumers have expressed concerns as gold traders have asserted that the price will soon touch Rs 65000. 

Though fluctuations in the price of the yellow metal were observed before the announcement, soon after the announcement the price has spiked. Within two days, the price has increased by Rs 1600 to reach a lifetime high. 

Currently, in the capital city Bhubaneswar, the price of 24-carat gold per 10-gram is Rs 60,700 as compared to Rs 58,900 on Tuesday. Similarly, the price of 22-carat gold has increased to Rs 54,200 from Rs 51,600. 

Meanwhile, consumers have expressed concerns over the price rise in gold jewellery during this marriage season. 

“My niece will be getting married soon. We are really concerned about how shall we gift gold jewellery. We are bound to gift, but, how will we arrange the money? The government should pay heed to the problems faced by a middle-class family,” said Namita Das, a consumer.

“The price will increase more in April. We have to purchase considering the family’s requirements. We are suffering, and are struggling to meet the needs," said another consumer, Amaresh Sharma.

On the other hand, the traders have said that FM Sitharaman announced a hike of 22-25% on the import duties on articles made from gold, silver, and platinum. As a result, the price of jewelleries and articles made from precious metals will definitely increase from April. 

“In the past two days, the price of gold has increased by Rs 1600. As per the budget, the new tax will get enforced from April, but it has already impacted the price. If the trend continues, it can be assumed that the price will reach Rs 65000 before April,” said Pramod Rath, Business Head, J&T Gems & Jewellery.

Reported by Kapilendra Pradhan, Bhubaneswar