Gold prices crosses Rs 60,000 mark: It won't have negative impact on buyers, say experts

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Gold prices soared to touch a fresh lifetime high on Monday amid strong global trends. The yellow metal price on the Multi Commodity Exchange (MCX) crossed the Rs 60,000-mark per 10 grams for the first time.

Gold price rallied Rs 1,400 to touch a life-time high of Rs 60,100 per 10 grams in Delhi on Monday.

Meanwhile, the closing price for 999 purity gold was Rs 59,479 per 10 grams, while that of 999 purity silver was Rs 68,472 per kg, the data available on India Bullion and Jewellers Association's (IBJA) website showed.

In the overseas markets, both gold and silver were trading higher at USD 2,005 per ounce and USD 22.55 per ounce, respectively.

Explaining why gold prices soared, Aisshpra Gems & Jewels Director Vaibhav Saraf said that recent financial events have led to a major price jump in gold prices and the effect of which is visible in the market which were already stagnant due to financial year end and wedding season coming to an end.

"Gold holds a sentimental value to the Indian consumer and any price rise if sustainable is easily digestable to the consumer. However, in the short term any major price variation leads to a slow down in sales. Currently, we are selling 22k gold at Rs 63,700 for 10 gm in Uttar Pradesh," he noted.

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Commenting on the soaring prices of the yellow metal, Waman Hari Pethe Jewellers Director Aditya Pethe said: "Gold was expected to reach this level, it may not have any negative impact. In fact, consumers tend to buy more gold when the prices are rising as their faith in the category further reinstates. With Gudi Padwa around the corner, this rise in prices may further encourage buying."

Pooja Diamonds Director Shrey Mehta said that gold prices fluctuate quite a bit but when observed from afar, the rates are climbing up gradually. "This asset has steadily outperformed all the investment assets since the pandemic and has yet again reached a new high. In the short run, yes buying will be slower, especially with the wedding season going on but in the long run, higher prices just keep consumers trusting the yellow metal as an investment item further," he added.