Gold Prices Surge, Sparking Selling Spree in Asia, Middle East

As gold prices soar to new heights, exceeding $3,000 an ounce, jewellers across Asia and the Middle East are facing declining sales as customers rush to sell their old jewellery and coins. This trend, driven by political and financial uncertainties, has resulted in a significant increase in scrap gold transactions, particularly in India's Zaveri Bazaar. The Indian government’s reduction of import duties has also contributed to domestic gold prices rising over 32% since July, prompting predictions that demand could drop by more than 30% in 2025. While wedding season typically boosts sales, jewellers report less than half their usual customer traffic, with many opting to exchange existing jewellery to manage costs. In response, retailers are seeing a shift toward more affordable, everyday gold items, such as 14-karat jewellery, as buyers seek budget-friendly options amidst rising prices. Experts warn that continued selling could lead to decreased imports, potentially stabilizing gold's escalating prices.