Gold Prices Soar: 12.9% Jump Hits Mauritian Jewelry Market

The international rise in the price of gold has significantly affected jewelry prices in Mauritius. Despite this increase, jewelry operators report that their sales have not been adversely impacted. However, they remain hopeful that this upward trend in prices will stabilize soon.

In November 2023, the price of gold reached a milestone, surpassing the $2,000 mark to hit $2,005. As of July 2024, the gold price has surged beyond $2,400.

Earlier this year, March saw a noteworthy increase of 8.9%, with gold hitting a historic high of $2,238.4.

An Investment Dashboard published by AON Solutions highlighted that this price surge occurred against a backdrop of a weakened U.S. dollar and uncertainty in the markets.

Throughout the first quarter of 2024, the price of gold rose by 8%.

However, there was a slight decline of 0.3% in June, largely influenced by the strength of the U.S. dollar.

Despite this temporary dip, gold prices have increased by 12.9% since the beginning of the year.

This significant fluctuation in international gold prices has inevitably impacted retail prices in Mauritius.

Youvraj Sauba, director of Shobha Jewels Co. Ltd, explains the direct correlation between international gold prices and local pricing.

“Gold prices continue to fluctuate internationally, reaching historic levels this July. We regularly import gold.

Back in 2001, the price of an ounce of gold was $270. Just think about how that has increased to nearly $2,500 today!

Consequently, our selling prices have risen considerably,” he stated.

Despite these increases, Sauba observed that the local market has remained stable, with customer footfall continuing.

Nonetheless, the inflation in gold prices has influenced buying behaviors. According to Ratish Sooklaul, director of G. Sooklaul Bijou D’or, some customers now choose to purchase more minimal gold products.

He noted that many buyers are opting for smaller-sized and lighter-weight gold jewelry pieces.

“While the price hike hasn’t affected all customers, it certainly has impacted others,” Sooklaul explained.

As of July 25th, at 8 a.m., gold was trading at $2,374.16 per ounce, reflecting a decline of 0.94% from the previous day’s trading, which had seen a gain of 0.36%.

Sooklaul expressed concerns regarding future price trends, stating, “On July 25, the price of gold was Rs 3,700 per gram.

Some analysts predict it could hit Rs 4,000 per gram by December. We can only hope that does not happen.”

The current trajectory of gold prices raises apprehensions among local jewelers, who closely monitor international market dynamics while striving to meet consumer demands amidst a volatile economic landscape.

Source: Defi Media