As the wedding season begins in Kashmir, traditionally a peak period for gold sales, jewellers across the Valley are witnessing a sharp decline in business. Soaring and unstable gold prices have kept buyers away, leading to an unexpected slump.

Traders said demand for gold has fallen to less than 10 percent of usual levels, with many customers delaying purchases in the hope of a price correction.

“The market is practically stagnant,” said Bashir Ahmad, President of the All Kashmir Gold Dealers and Workers Association. “Even though it’s marriage season, we aren’t seeing the kind of rush we used to. People are staying home, and shopkeepers are idle.”

Gold prices currently stand at around Rs 8,200 per gram for 18-carat gold and Rs 9,650 per gram for 24-carat, Ahmad said. However, he believes the problem lies not only in the high rates but also in the unpredictability of the market.

“People keep waiting for gold proces to fall, and this wait-and-watch approach is hurting business. If the price stabilises—even at a high level—people may start buying again. But as long as it keeps fluctuating, buyers hesitate.”

According to traders, customers are postponing purchases in the hope that prices will drop. This has severely impacted a sector that relies on seasonal momentum, particularly during weddings.

Ahmad stressed the need for price stability. “If gold rates remain constant, whether high or low, for two to three months, we can plan accordingly, and buyers will return. But in this current volatile climate, even interested buyers are holding back.”

He also pointed to global economic factors and currency fluctuations as drivers behind the erratic gold prices, leaving local traders uncertain.

“As traders, we have no control over global markets,” Ahmad added. “All we can do is hope the prices come down so we can get back to work.”

With May approaching—typically another busy month for weddings—traders are hopeful that price stabilisation or a downward trend could restore consumer confidence and provide some relief to the sector. (KNO)

Courtesy: Kashmirlife