Jewellery traders across Bengaluru are witnessing a sharp drop in customer footfall after gold prices surged following the Union government’s decision to increase customs duty on gold to 15 per cent.
Over the past few days, gold prices reportedly climbed from around ₹15,000 per gram to above ₹16,000 per gram, leaving many buyers hesitant to make purchases.
Customers postponing gold purchases
Jewellers in several parts of the city said the sudden rise in rates has significantly affected business.
Shanti Jewellers said customer visits have reduced sharply due to the steep increase in prices.
Traders noted that while demand for buying gold has weakened, more customers are now choosing to sell jewellery and ornaments to benefit from higher market rates.
More people selling gold
Shop owners in Shivajinagar said many families are using the opportunity to encash gold to manage household expenses and school fees.
According to traders, lower-income customers have been the most affected by the price surge, with many postponing purchases entirely.
Jewellers also stated that business conditions have become more difficult because of ongoing road excavation work near Jumma Masjid Road, one of Bengaluru’s major jewellery markets.
Traders face difficult period
Several traders said the customs duty hike came at a time when demand was already slowing down.
Business owners believe high gold prices, combined with roadworks and reduced affordability, are creating a challenging environment for jewellery retailers across Bengaluru.
The Shivajinagar Association of Jewellers reportedly stated that it was still assessing the long-term impact of the price rise on the trade