Gold Prices May Struggle at Current Levels Despite Sharp Rally
Gold and silver have been on a sharp rally, but experts are cautioning that precious metals may struggle to maintain their momentum at current levels. Shrey Ji, an analyst, is not very bullish on gold and silver at current levels due to short-term speculative moves. The discussion also explores the outlook for listed jewellery stocks, changing consumer preferences, hallmarking, and the shift towards organised jewellery retailers.
According to Ji, daily-wear jewellery businesses may offer better opportunities than traditional gold jewellery stocks. He points out that valuations, safe-haven demand, and market risks could shape the future of precious metals and jewellery investments. The analyst notes that consumer preferences are shifting towards more affordable and fashionable options, which could impact the traditional gold jewellery industry.
Ji also mentions that hallmarking, a mandatory certification process for gold jewellery in India, may have a positive effect on organised retailers. However, this may not be enough to offset the challenges faced by the industry due to changing consumer preferences and market risks.