Gold Crush, as Prices Rise

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"The prices have scared the individual buyers and retailers are witnessing the drastic fall in the demand, despite it being the wedding season."

As gold touched an all-time high of Rs 1,500 per 1 gram, jewelry shops are in doldrums. Over the past one month, gold prices have shot up by 20%.

"The middle class normally spends a few lakhs on gold for weddings, but now many of them think that buying gold at very high prices doesn’t make any sense, instead many are out on a selling spree," says the manager of Malabar Gold.

The prices have scared the individual buyers and retailers are witnessing the drastic fall in the demand, despite it being the wedding season. Market analysts say that the rise is due to an increasing shift by the investors to gold. "Retailers have stopped stocking up. In the coming days, they would stop purchasing gold from domestic buyers," said Srinivasan, N. Krishnaiah Chetty & Sons. Investors are going for gold and market analysts say that the prices would touch Rs 1,600 per 1 gram.

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