In spite of gold prices rising, demand has remained upbeat, with gold jewellery selling without missing a heartbeat.

As Covid-19 recedes and the kamurta period ends, weddings are being organized in a big way again, leading to high demand for gold. Gold prices touched a peak of Rs 51,500 per 10 grams last week — a 12.5-month high. Yet, demand remained strong.

According to Jigar Soni, President, Jewellers’ Association of Ahmedabad (JAA), an increase in gold prices has not impacted gold jewellery demand. Besides pure gold, demand for diamond jewellery, as well as silver and rose gold jewellery, is equally good. With the Omicron wave remaining relatively milder and a spike in weddings, sales have been good. In the coming days, several weddings have been planned because of the shubh muhurats, and that is likely to keep the demand high.

In addition to jewellery, demand for bullion has also increased. Gold prices have been rallying for the past 10 days in the backdrop of escalating tensions between Russia and Ukraine, and surging crude oil prices. Gold is often considered to be a hedge against inflation, economic and geopolitical uncertainty. Rising global inflation and a surge in crude prices have also caused gold prices to escalate.