Gold Traders Seek Meeting with PM Modi Amid Concerns Over CTI-Linked Suspend on Gold Purchases

Gold Traders Seek Meeting with Government Amid PM Modi's One-Year Pause Appeal

Amid Prime Minister Narendra Modi's appeal urging citizens to pause gold purchases for a year, jewellery traders have sought a meeting to express concerns over the potential impact of the proposed measure on demand and livelihoods across the sector.

During his speech on Sunday, PM Modi urged Indians to avoid gold purchases for at least one year, linking the appeal to pressure on India's foreign exchange reserves amid global economic uncertainty. The move is aimed at conserving foreign exchange, which is used extensively for gold purchases.

The Chambers of Trade & Industry (CTI) Chairman, Brijesh Goyal, has written to the Prime Minister seeking a meeting with a delegation of gold and jewellery traders on Tuesday. The delegation, under CTI's leadership, wishes to present their concerns over the proposed one-year pause in gold buying, highlighting its potential impact on demand, particularly during the peak wedding season.

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India, one of the world's largest gold consumers, has an annual demand of around 700-800 tonnes. The industry has flagged that a sharp decline in consumption following the appeal could potentially affect small jewellers, artisans, and employment across the value chain.

A comparison of the potential impact on gold demand is as follows:

The delegation has sought urgent discussions with the government, stating that while it supports broader economic stability measures, the industry needs clarity on managing the potential demand shock during a critical seasonal period.

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Meanwhile, jewellery stocks saw sharp pressure in markets following the announcement. Titan Company fell nearly 6% in afternoon trade to Rs 4,238.70, down Rs 270.30 or 5.99%, while other listed peers also witnessed volatility.