Gold prices are skyrocketing in Mumbai, with figures standing at Rs 39,720 per 10 grams. This has spread gloom in the market as the customers are shying away from buying gold even as the festival of Ganesh Chaturthi is just round the corner.

Kumar Jain, the Vice President of Shri Mumbai Jewellers Association, says, the trade tensions between the US and China isn't a good signal for the market. The weakening of rupee to dollar and a general slowdown in the economy have had adverse effects. In the last three months gold prices have crossed Rs 40,000 mark. Jain also feels that by the time Diwali hits the city, there could be a further appreciation of Rs 2,000-2,500 with the gold prices crossing the Rs. 42,000 mark.

Even during the Rakshan Bhandhan, there was no response from the customers. People generally have sentimental value attached to gold during the festivals but the Rakhi festival went cold for the jewellers. Ganesh Chaturthi is a big festival in Mumbai. People consider gold purchase a must for this festival. The gold sales this season have gone down considerably by 70-80 per cent, say Mumbai jewellers.

The orders received for gold are very less. Even the various Ganpati pandals haven't ordered substantially this year. The various Ganesh pandals receive money through ads and banners but this time because of slowdown in the economy, they haven’t received much donation. Many pandals in the city haven’t even received a single ad and consequently their decorations have also been scaled down.

Vrishank Jain, the CEO of Umedmal Trilokchand Zaveri, said, "Generally, I have many builders who used to come and get gold items like gold cris chuda, gold modak, gold necklace made but this time, those orders have been very less." Vrishank also said, "The common man too is purchasing simple pendants and coins. The common man does not have the budget to manage such high prices. Generally, people know about the rising prices but when they come and check at the jewellery shops, they are shocked."