Rohtak: Bullion traders rue losses caused by rising gold price, fear recession

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Rohtak, April 11

A meeting of the Bullion Traders’ Association was held under the chairmanship of working president Hemant Bakshi here on Wednesday.

During the meeting, members expressed concern over the rising price of gold. It was decided at the meeting that the customers who had placed orders for jewellery would be asked to deposit the balance amount within seven to 10 days, failing which the orders will be cancelled.

“In view of the upcoming wedding season, a number of customers have placed orders for jewellery by paying 15 to 20 per cent of the total amount in advance. The customers would have to be given jewellery at the rate of gold at the time of placing the order. However, the prices of gold and silver are increasing day by day, causing losses to the jewellers,” said Bakshi.

He pointed out that the jewellery traders had to suffer losses due to the sharp rise in gold prices.

“Due to the continuous increase in the price of gold, there are less chances of the price coming down this year. In such a situation, the bullion market may be hit by a recession,” cautioned Bakshi.

Rakesh Verma, president, Bharat Jewelry Export and Domestic Council, said the gold prices are increasing due to rising expectations of rate cuts by the US Federal Reserve and investors are preferring gold. Besides, there is increasing geopolitical uncertainty in Ukraine and Gaza, he added.