Mumbai, August 26: The gold price has breached the mark of Rs 40,000 per 10 gm, on Monday.
Mumbai Jewellers' Federation President Rakesh Shetty said the incidence of recycling of old gold is actually as high as 70 per cent and sales have declined by over 65 per cent.
The price of the precious yellow metal hit a life-time high of Rs 38,666 per 10 gram in the middle of August. Economists predict that the demand for safe haven assets amid uncertain global business environment took the gold price to fresh highs.
The recent depreciation of rupee is considered as another key factor which drives Gold prices red hot. The escalation in the US-China trade war fear frantically forces investors to look into safe havens and gold is the immediate answer.
Prices have seen a sharp surge after the US Federal Reserve earlier indicated that its 25 basis point rate cut is a "mid-year-adjustment" and not the beginning of a rate cut cycle. Fear of a global recession also played its role in the surging gold prices.