Gold market in city loses glitter after PM’s appeal

Patna: City’s gold market has started feeling the impact of Prime Minister Narendra Modi’s appeal to citizens to defer gold purchases for a year, coupled with the recent hike in import duty, as jewellers across Patna reported a decline in casual buying.

Traders said wedding-related purchases were continuing, but discretionary buying had slowed considerably. Families with marriages at home are still purchasing ornaments out of necessity, while those buying gold for gifting, investment or personal use are largely holding back.

A manager of a leading jewellery brand in the city said customer footfall at his stores had dropped by around 10%. He said many buyers were confused about whether to purchase immediately or wait for prices to stabilise.

Sanjay Bhosle, who is engaged in hallmarking and gold recycling, said he too was facing the impact of the slowdown.

Jeweller Saket Kesariya, who owns three stores in the city, including one at Hathwa Market, said casual buyers had postponed their plans though wedding demand remained steady.

“Many customers are visiting shops mainly to seek clarity on future price trends rather than to make purchases,” Kesariya said, adding that uncertainty had become a key factor affecting buying behaviour. He also expressed the view that gold prices could rise further.

Kesariya warned that the broader gem and jewellery sector, which supports crores of people directly and indirectly across the country, could face serious consequences if the slowdown continues.

Navneet Kumar, owner of a jewellery showroom on Boring Road, said the impact had so far been limited at his establishment. He noted that gifting purchases had reduced, though bridal jewellery sales were continuing.

“Recently, we are seeing a trend where customers are exchanging old gold to buy new items for gifting,” he said.

Patliputra Saraffa Sangh president Vinod Kumar said it was still too early to fully assess the impact of the PM’s appeal as the announcement came during the wedding season, when many families had already placed orders.

He said the traders’ body was not opposed to the appeal, acknowledging that it had been made in the national interest amid concerns over the rising current account deficit. However, he added that the govt should have consulted trade representatives before making such a public appeal. Kumar cautioned that if the trend continued, the gold market and those dependent on it could face serious hardship, including possible job losses.