Fresh gold supplies in the city’s bullion market have dried up completely during the past few days with commercial banks temporarily ceasing to supply the yellow metal to curb speculation.
‘We are not getting gold supplies from the banks arriving in two designated depots in the local market,’ stated President of Raipur Sarafa Association Harakh Malu. He said that gold supplies had been ceased by banks to curb speculation. Gold prices have been steadily rising while quoting at Rs 31,250 on Monday afternoon in the Raipur bullion market up from the previous level of Rs 30,800 per 10 gms.
‘It would be hard to say where the gold prices would be heading in the days to come on the face of the festive season beginning with Rakhi followed by Janmashthami besides other festivals which would follow in the coming months,’ Malu said. ‘The biggest blow taken by the jewellers in the Raipur bullion market had been from the speculative trading of gold in the futures market which is ruining families of jewellers,’ he said.
Malu said that the 10 per cent import duty on gold has further led to a spike in gold prices during the recent months. ‘The younger generation of jewellers in the Raipur market have taken to preferring short term gains from speculative trading in gold despite the fact that the traditional models of selling gold jewellery remaining profitable and stable’, Malu said.
‘We urge the Union Government to immediately bring a ban on trading of gold in the futures market as it is having a detrimental effect on gold retailers and wholesalers in the local market’, he said. There are 500 members with the Raipur Sarafa Association in which 75 per cent of the membership comprise smaller jewellers,’ Malu said.
Jewellery sales in the local market is expected to pick up later this week beginning with Rakhi despite a price spiral as tradition makes people still buy gold during festive seasons,’ he said. On the other hand silver prices aren’t in the comfort zone either with a kilogram of silver quoting at Rs 50,000 on Monday in the local market. ‘Silver prices are also seeing volatility due to speculation while facing similar price rise problem as gold’, he said.