Jewellery loses lustre as gold prices hit record high

Domestic demand for gold has taken a hit as the yellow metal traded at ₹90,500-90,800 per 10 gm in Mumbai's spot bullion market.

- RAJESH BHAYANI

This is in tandem with international prices, which hit record highs and crossed $3,000 an ounce on Friday, say industry players. One ounce is approximately 28.35 gm.

The jewellery industry is toying with the question whether demand will return at these high prices as the marriage season has started, even as they are simultaneously preparing for changes in demand composition and considering tweaking products.

At the current high prices, gold is increasingly becoming unaffordable for the lower and middle class, the biggest buyers of gold in volumes, said Chirag Sheth, principal consultant of London-based bullion research firm Metal Focus.