Jewellers squeezed over advance tax payments, sparse consumer interest

Customers are not buying gold though prices are now falling

High volatility in gold prices have dealt a double blow to jewellers as consumers are staying away from visiting shops because of the coronavirus spread. This has reduced discretionary spending as it rendered jewellery sales to almost a standstill. Also, advance tax payment has put them under pressure. 

Prices continued to fall, and on Saturday, they fell further. The next 10 days will be crucial, although it is believed that demand growth may begin after a month.

Jewellers have started reducing their inventory to avoid any additional handling cost. As against 35-45 days of stocks jewellers earlier, they are just building stocks