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Gold prices go down, but not many have been rushing to buy
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R. Balasubramaniam
By Chris Kamalendran
After reaching a peak early this month, prices started to drop this week with a sovereign (22 carats) selling at Rs 142,000.
According to the available statistics, from August 2019 onwards, prices began rising from Rs 62,000 upwards.
Colombo Gold Traders Association Treasurer Ramanan Balasubramaniam said even though prices reduced there had been no immediate rush to purchase gold items.
“This may be because people believe the prices will drop further,” he said.
However, he said there were fluctuations of prices even within the week, with a gold sovereign rising in price by Rs 15,000 and falling by Rs 10,000 on Friday.
Mr. Balasubramaniam said the sharp drop in prices this month was directly linked to appreciation of the Sri Lankan rupee against the US dollar.
Lalitha Jewellers Chairperson Kandasamy Sellvakumar said traditionally, people invested their savings in gold.
He said even though the prices had been high in the past few months purchases remained more or less the same.
He said he expected the prices to drop once again during next month’s Sinhala and Tamil New Year season, before rising later in the year.
Gem and Jewellery Authority Assistant Director Indika Bandara said the drop in prices would not have a major impact on the industry.
Despite the drop in gold prices this week, traders say there has been no rush to buy jewellery. Pix by Akila Jayawardana
Gem and Jewellery Authority Assistant Director Indika Bandara said the drop in prices would not have a major impact on the industry.
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