Gold rates spike in Odisha, jewellery market slows; Trump tariffs blamed

Gold prices are witnessing a sharp and steady surge, leaving jewellers anxious and customers cautious. The upward trend in the precious metal has impacted jewellery markets across Odisha, with many buyers postponing their purchases.

According to jewellers, the daily price hikes have significantly reduced customer footfall, even affecting the usual wedding season demand. “Shops are wearing a deserted look as buyers hesitate to purchase at such high rates,” said a local jeweller. 

“Rajasthan’s Jaipur was the highest exporter of jewellery. But now the goldsmiths have no work. Similarly, the tariff has reduced the value of the Indian currency. We expect a further hike in gold price,” said K Badrinarayan Subudhi, managing director of Rithvika jewellery. 

Experts attribute the surge in prices to a mix of international and domestic factors. Global uncertainties, rising crude oil prices, inflationary pressure, and geopolitical tensions are believed to be pushing up gold prices in the international market, which directly impacts prices in India.

“The major reason for the gold price hike is Donald Trump’s tariff. It will further increase inflation in the US. So to hedge the inflation, people are investing in gold. Secondly, the US Federal Reserve is planning for a rate cut, resulting in a gold price hike. Thirdly, investors are investing in ETFs. Similarly, central banks, including the Reserve Bank of India, are buying gold to increase their reserve,” said Trinath Lenka, an economist.

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The volatility has put jewellers in a difficult spot, with concerns over inventory and sales. Customers, too, are worried about whether the upward trend will continue or if relief is in sight.

“People who once bought 30–40 grams of gold are now opting for silver. Even those who used to purchase 20 grams are managing with only 5 grams,” a customer observed.