As gold prices continue their relentless climb, the surge is being felt across the spectrum—from households to jewellers, bullion traders and policymakers—all grappling with how to respond to the unprecedented spike.

In Vijayawada, a key jewellery hub in Andhra Pradesh, jewellers say the impact is already visible in the form of thinning footfall and empty showrooms. With Finance Minister Nirmala Sitharaman set to present the Union Budget on February 1, the trade is pinning its hopes on policy relief that could help cool soaring prices.

Jewellers acknowledge that the finance minister faces a complex challenge, given the global factors driving the rally in precious metals. However, they argue that domestic measures—ranging from a reduction in import duties to stronger steps to curb smuggling—could provide some respite.

While business sustainability is a growing concern for jewellers, many also express empathy for customers. Gold and silver, traditionally seen as secure investments and essential for weddings and festivals, are increasingly slipping out of reach for the middle and lower-middle classes.

Market experts point out that the rise in prices is part of a broader global trend. Precious metals are witnessing increased demand as safe-haven assets amid sell-offs in global equity markets and renewed geopolitical tensions.

The situation has been compounded by the depreciation of the Indian rupee against the US dollar, making gold imports more expensive and further inflating domestic prices.

Even as these macroeconomic forces continue to push gold and silver to record highs, small and mid-sized jewellers across the country are hoping the upcoming budget will introduce policy measures that help rein in prices and revive demand.