PM Modi’s Gold Purchase Appeal Triggers Sharp Fall in Jewellery Stocks, Hyderabad Gold Rates Stay High

Hyderabad: Gold rates in Hyderabad and other Indian cities declined slightly but remained above the Rs 1.5 lakh mark after Prime Minister Narendra Modi urged citizens to defer non-essential gold purchases amid the ongoing West Asia crisis.

Following the Prime Minister’s appeal at a BJP public meeting in Secunderabad, jewellery stocks including Titan Company, Kalyan Jewellers, PN Gadgil Jewellers, and Senco Gold witnessed sharp declines as investors feared weaker demand in the coming months.

PM Modi Urges Citizens to Avoid Non-Essential Gold Purchases

On Sunday, Prime Minister Narendra Modi appealed to citizens to postpone non-essential gold purchases for the next one year.

The appeal was made as part of broader austerity measures aimed at conserving India’s foreign exchange reserves during the ongoing West Asia crisis.

Addressing a BJP public meeting in Secunderabad, Modi said:

“In the present circumstances, saving foreign exchange has become equally important for the nation.”

The Prime Minister also highlighted India’s dependence on imported fuel and stressed the need for austerity measures, including:

• Conserving fuel
• Reducing avoidable expenditure
• Prioritising domestic consumption

Jewellery Stocks Witness Sharp Decline After PM Modi’s Appeal

Following Modi’s remarks, investors rushed to reduce exposure to gold-linked stocks amid fears that jewellery demand may weaken in the coming months.

Shares of Titan Company plunged as much as 8.02 per cent and touched an intraday low of Rs 4,151.40 during early trade.

Kalyan Jewellers India shares declined 10 per cent to Rs 382.20.

PN Gadgil Jewellers stock dropped 8.32 per cent to Rs 668.05.

Sky Gold and Diamonds shares were trading 12.24 per cent lower at Rs 475, making it one of the worst-hit stocks in the jewellery segment.

Recently listed BlueStone Jewellery and Lifestyle fell 5.92 per cent to Rs 474.70.

Meanwhile, Senco Gold slumped 11 per cent to Rs 325.25, while Rajesh Exports declined 4.63 per cent to Rs 116.15.

Gold Rates in Hyderabad Remain Above Rs 1.5 Lakh

Despite the sharp decline in jewellery stocks, gold rates in Hyderabad and other cities remained largely stable with only a slight dip attributed to tensions in West Asia.

In Hyderabad, current gold prices are:

• Rs 1,52,130 per 10 grams for 24-carat gold
• Rs 1,39,450 per 10 grams for 22-carat gold

Gold prices in Hyderabad continue to remain above the Rs 1.5 lakh mark despite the fall in jewellery counters.

Gold Futures Open Lower on MCX

On the Multi Commodity Exchange (MCX), gold futures for June 5 opened marginally lower by Rs 43.

Gold futures opened at Rs 1,52,487 per 10 grams compared to the previous close of Rs 1,52,530.

Experts said gold prices declined in early morning trade after recording weekly gains.

Experts Cite Dollar Strength and Oil Prices

According to market experts, gold prices came under pressure due to:

• A strong US dollar
• Elevated crude oil prices
• Concerns linked to the West Asia crisis

Analysts said oil prices increased after US President Donald Trump rejected Iran’s latest response to a US-backed peace proposal.

Experts believe the government is attempting to discourage non-essential gold imports at a time when rising crude oil prices are expected to widen India’s trade deficit and increase pressure on the current account deficit.

Gold rates in Hyderabad remained above Rs 1.5 lakh despite a slight decline, while jewellery stocks witnessed a sharp fall after Prime Minister Narendra Modi urged citizens to avoid non-essential gold purchases for one year amid the West Asia crisis. Shares of Titan Company, Kalyan Jewellers, Senco Gold, and several other jewellery firms dropped sharply as investors reacted to concerns over future demand, while analysts linked market pressure to rising crude oil prices, a stronger dollar, and fears of increasing trade and current account deficits.

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