Titan, Senco Gold, PC Jeweller, other jewellery stocks fall up to 10% amid record gold prices

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Jewellery stocks dropped in trade on September 26 as investors remained concerned over the possibility of slowing demand amid record high gold prices.

Gold and silver prices have been hitting fresh record highs consecutively for several sessions this month, dodging market volatility.

Jewellery stocks decline:

PC Jeweller shares dropped nearly 10 percent to trade at Rs 12.14 apiece. Kalyan Jewellers and Senco Gold shares fell over 3 percent to Rs 448 apiece. PN Gadgil Jewellers and Titan shares meanwhile fell over 2 percent each.

Gold futures at record high

Earlier this week, Gold futures on Multi Commodity Exchange (MCX) with October expiry hit a fresh lifetime high of Rs 1,14,179 per 10 grams. Contracts with December expiry meanwhile hit a lifetime high of Rs 1,14,198 per 10 grams. Domestic gold prices also jumped.

The prices have now consolidated slightly, but still remain high.

Silver accompanying gold:

Along with gold, silver futures also hit fresh lifetime highs. Silver futures with December expiry hit a fresh lifetime high of Rs 1,38,184 per kg earlier this week. The future contracts with March expiry hit an all time high of Rs 1,39,626 per kg today.

Analysts note that customers may pause their jewellery purchases when the precious metals are at such high levels.

Demand for ornaments is likely to fall 27 percent from a year ago in terms of volume during the three-week buying period, Bloomberg quoted Surendra Mehta, national secretary at the India Bullion and Jewellers Association, as saying.

Consumers, especially in big cities, are postponing spending due to high costs, he added.

"The rally is supported by the Fed’s dovish rate-cut outlook and expectations of further easing into late 2025, keeping liquidity strong in bullions. Global uncertainties and declining dollar dependence continue to fuel buying interest in Gold and Silver," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Also read: Our LIVE blog on stock market updates

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