Gold Shines Bright but Out of Reach: A Price Surge Shakes the Market

The price of gold in India hit a historic high, impacting buyers, especially women preparing for weddings and festivals. The surge is attributed to market tensions and potential US interest rate changes. Despite easing prices, concerns remain about affordability and the impact on small businesses.

The price of gold in India has reached unprecedented levels, briefly surpassing Rs 1 lakh per 10 grams, leaving a significant impact on the market and potential buyers. This surge has troubled many, especially women, traditionally keen on purchasing gold for weddings and festivals.

The spike, occurring in the crucial buying seasons like Akshaya Tritiya, has put significant pressure on middle-class families. Although the price softened slightly amid hopes of US interest rate cuts and eased market tensions, the cost remains a major concern for buyers.

Gold traders are grappling with reduced buying, though some remain optimistic about long-term demand. Even as shopkeepers fear a slowdown, the cultural significance of gold in India supports an enduring belief in its importance among female consumers.

(With inputs from agencies.)