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Gold  faces selling pressure, MCX Gold sees single day drop of Rs 11000

Price drop highlights the fragility of safe-haven premiums in the face of a strengthening US dollar and shifting treasury yields.

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The gold  faced selling pressure on Thursday, reversing gains seen in the previous two sessions. 24 Karat gold dropped by Rs 109 to around Rs 16,237 per gram, while 22 Karat gold fell by Rs 100 to about Rs 14,885 per gram, reflecting the broader correction in international gold prices.

The dramatic fluctuation in gold prices observed on March 12-13, 2026, serves as a quintessential case study in market volatility and the interplay of macroeconomic indicators. With a single-day drop of approximately Rs.11,000 on the Multi Commodity Exchange (MCX) and a domestic correction bringing 24 Karat gold to roughly Rs.16,237 per gram, the event highlights the fragility of safe-haven premiums in the face of a strengthening US dollar and shifting treasury yields. This essay analyzes the catalysts behind this correction and evaluates the strategic implications for investors.

Macroeconomic Catalysts: The Dollar-Yield Nexus The primary driver of the recent sell-off, despite heightened geopolitical tensions in the Middle East, is the inverse correlation between the US dollar and bullion. As US bond yields rose, the opportunity cost of holding non-yielding assets like gold increased. In management theory, this represents a “liquidity preference shift.” Investors moved away from the “insurance” of gold to capitalize on the higher risk-adjusted returns of debt instruments, bolstered by a robust greenback.

Furthermore, the domestic drop of Rs.11,000 in India—a market characterized by high price sensitivity—indicates a correction of previous “overheating.” As international spot prices weighed against $5,180 per ounce, the Indian market, which often carries a premium due to import duties and local demand, saw a rapid unwinding of long positions.

Geopolitical Friction vs. Inflationary Hedges A paradox in the current market is the simultaneous rise of crude oil prices above $100 per barrel due to the US-Iran conflict. Traditionally, such escalations drive gold upward as an inflation hedge. However, the current decline suggests that market participants are currently prioritizing “monetary certainty” (the dollar) over “geopolitical risk insurance” (gold).

From a management perspective, this reflects a shift in the Beta of gold. While it remains a hedge against inflation, its sensitivity to interest rate projections and currency strength has momentarily eclipsed its role as a conflict-driven safe haven. The selling pressure on Thursday suggests that the market had already priced in much of the geopolitical risk, leading to a “sell the news” phenomenon.

Strategic Outlook: Will Gold Reclaim Losses? The question of a recovery depends on two pivotal factors: technical support levels and the trajectory of the Federal Reserve’s monetary policy. Historically, gold sees strong “dip-buying” from institutional investors and central banks when prices retreat to psychological support levels. In the Indian context, a drop of this magnitude often triggers a surge in physical demand, which can provide a floor for MCX prices.

If crude oil continues its trajectory above $100, the resulting inflationary pressure will eventually force a re-evaluation of gold. In the short term, however, the “Direct Fall” signals a period of consolidation. Management professionals should view this not as a collapse of value, but as a necessary correction that aligns the asset with current yield realities.

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National News

Lukson Jewels expands retail presence amid rising demand for LGD jewellery

The brand, backed by JK Star Group, is witnessing 25% month on month growth and plans to scale from five to over 30 stores across key Indian markets

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Lukson Jewels, India’s emerging lab grown diamond jewellery brand founded by third generation diamantaire Anand Lukhi, is witnessing accelerated growth as demand for conscious luxury and everyday fine jewellery rises among Millennial and Gen Z consumers. Backed by the 34-year legacy of the JK Star Group, the brand continues to strengthen its position within the evolving fine jewellery landscape through vertical integration, omnichannel expansion, and design led innovation.

Since launch, Lukson has recorded a sustained 25 percent month on month growth rate, signalling strong product market alignment and repeat customer adoption. Within the first six months of operations, the brand has served over 20,000 customers, achieving more than 99 percent customer satisfaction, reinforcing consumer trust across quality, pricing transparency, and overall buying experience.

The brand’s traction reflects a broader shift in jewellery consumption patterns, particularly among working professionals and younger buyers who increasingly prioritise sustainability, transparency, and versatility over traditional occasion driven purchases.

Today, Lukson offers over 1,500 unique jewellery designs across online and offline channels, spanning earrings, rings, necklaces, and bracelets crafted with SGL certified lab grown diamonds. New collections are introduced every 15 days, enabling the brand to remain trend responsive while sustaining engagement across categories.

The onboarding of actor Vaani Kapoor as Brand Ambassador has further strengthened Lukson’s positioning at the intersection of modern elegance, ethical sourcing, and aspirational affordability. The association reflects the brand’s intent to build cultural relevance alongside commercial scale.

Currently operating five offline retail stores across five cities, Lukson plans to scale to over 30 stores across key Indian markets, reinforcing its omnichannel strategy and enabling deeper consumer access through experiential retail formats.

Speaking on the brand’s growth trajectory, Anand Lukhi, Founder and CEO, Lukson, said, “Lukson was created around a simple insight that modern consumers want jewellery that reflects both personal style and personal values. Lab grown diamonds allow us to offer the same brilliance and craftsmanship associated with fine jewellery while addressing concerns around sustainability and transparency. Our growth validates that conscious luxury is no longer niche. It is becoming the new mainstream.”

Rooted in JK Star Group’s vertically integrated diamond ecosystem, Lukson combines decades of expertise in grading, craftsmanship, and manufacturing with contemporary D2C retail strategies. This integration allows the brand to maintain tighter quality control while offering premium designs at accessible price points.

Vedant Lukhi

Vedant Lukhi, Co-Founder of Lukson, added, “Our focus has been to build systems that support scale without compromising trust. Vertical integration gives us supply security and cost efficiency, while design innovation and fast collection cycles allow us to stay culturally relevant. The goal is not just growth, but sustainable and disciplined expansion.”

Expansion Strategy and Manufacturing Investments

As part of its next phase of growth, Lukson is investing in strengthening its supply chain infrastructure. The company plans to expand its lab grown diamond cultivation capacity to over 400 growing units, ensuring long term supply reliability, enhanced quality control, and improved cost optimisation.

On the retail front, Lukson aims to scale across India through a hybrid retail model comprising exclusive brand stores and shop in shop formats across malls and high street locations in Tier 1 and Tier 2 cities. This expansion supports the brand’s vision of building deeper national penetration while maintaining a consistent omnichannel experience.

Lab grown diamonds, which possess the same physical, chemical, and optical properties as mined diamonds, continue to gain acceptance globally due to reduced environmental impact and ethical sourcing advantages. Lukson’s model aligns this technological advancement with evolving consumer expectations around transparency, accessibility, and responsible luxury.

With strong early growth momentum, expanding retail infrastructure, and continued investment across manufacturing and brand development, Lukson is positioning itself as a rising name in India’s conscious luxury jewellery segment.

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